    Telecommunications: Costs Reported by Federal Organizations for Fiscal
    Year 1995 (Letter Report, 06/17/96, GAO/AIMD-96-105).

    In a May 1996 report (GAO/AIMD-96-95), GAO identified agencies that are
    using the Federal Telecommunications System (FTS) 2000 and compared
    telecommunications costs between agencies that used FTS 2000 and those
    that did not. This report provides additional information on
    governmentwide telecommunications costs. GAO surveyed 42 federal
    agencies and totaled their fiscal year 1995 telecommunications costs,
    broken out by the following five categories: FTS 2000 services, non-FTS
    2000 long-distance services, local telecommunications services, wireless
    services, and telecommunications support contract services. GAO also
    discusses reported local access costs generally associated with FTS 2000
    telephone calls and the government's reported fiscal year 1995 costs for
    the Purchase of Telecommunications and Services.

    --------------------------- Indexing Terms -----------------------------

     REPORTNUM:  AIMD-96-105
         TITLE:  Telecommunications: Costs Reported by Federal Organizations
                 for Fiscal Year 1995
          DATE:  06/17/96
       SUBJECT:  Telephone
                 Contract costs
                 Service contracts
                 Cost analysis
                 Data transmission
                 Telecommunication
    IDENTIFIER:  Federal Telecommunications System 2000
                 FTS 2000

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    Cover
    ================================================================ COVER

    Report to the Subcommittee on Treasury, Postal Service, and General
    Government, Senate Committee on Appropriations

    June 1996

    TELECOMMUNICATIONS - COSTS
    REPORTED BY FEDERAL ORGANIZATIONS
    FOR FISCAL YEAR 1995

    GAO/AIMD-96-105

    Government Telecommunications Costs

    (511095)

    Abbreviations
    =============================================================== ABBREV

      CIA - Central Intelligence Agency
      FEMA - Federal Emergency Management Agency
      FTS - Federal Telecommunications System
      GAO - General Accounting Office
      GSA - General Services Administration
      POTS - Purchase of Telecommunications and Services
      OMB - Office of Management and Budget
      SDIS - Switched Digital Integrated Services

    Letter
    =============================================================== LETTER

    B-271967

    June 17, 1996

    The Honorable Richard C.  Shelby
    Chairman
    The Honorable J.  Robert Kerrey
    Ranking Minority Member
    Subcommittee on Treasury, Postal
      Service, and General Government
    Committee on Appropriations
    United States Senate

    Section 629(c) of Public Law 104-52, the Fiscal Year 1996 Treasury,
    Postal Service, and General Government Appropriations Act, requires
    us to deliver a comprehensive analysis of the cost of certain federal
    agency telecommunications services.  As required, on May 31, 1996, we
    provided you with our report identifying which agencies are using the
    Federal Telecommunications System (FTS 2000) and comparing
    telecommunications costs between selected agencies that use FTS 2000
    and those that do not.\1 This report provides additional information
    you requested on governmentwide telecommunications costs.
    Specifically, as agreed with your offices, we surveyed 42 executive
    branch departments and government agencies (hereafter referred to as
    federal organizations) to identify total fiscal year 1995
    telecommunications costs, broken out by the following five
    categories:  FTS 2000 services,\2 non-FTS 2000 long-distance
    services, local telecommunications services, wireless services, and
    telecommunications support contract services.

    This report also provides information that you requested on reported
    local access costs generally associated with FTS 2000 telephone calls
    and the government's reported fiscal year 1995 costs for the Purchase
    of Telecommunications and Services (POTS).\3

    As agreed with your offices, because of the short time frame for
    responding to this request, we did not independently verify the
    accuracy of the cost information provided by federal organizations
    during our review.

    --------------------
    \1 Telecommunications:  FTS 2000 Cost Comparison (GAO/AIMD-96-95, May
    31, 1996).

    \2 The FTS 2000 program is managed by the General Services
    Administration (GSA).

    \3 POTS contracts cover the purchase, installation, maintenance,
    repair, removal, and relocation of new and used telephone equipment.

       RESULTS IN BRIEF
    ------------------------------------------------------------ Letter :1

    The 41 federal organizations that responded to our survey\4

    reported that they spent about $2.4 billion for telecommunications
    services in fiscal year 1995.  In many cases, federal organizations
    provided estimates of fiscal year 1995 telecommunications costs
    because actual costs were unknown.  Furthermore, the total costs
    reported are understated because some organizations did not report
    complete cost information.  We also found differences to exist
    between the FTS 2000 costs reported by federal organizations and GSA.
    We attempted to reconcile these differences where we could.

    While FTS 2000 costs paid by federal organizations include telephone
    company charges for local access, these charges are not separately
    identified in FTS 2000 vendor pricing information.  The latest
    information GSA could provide on local access was based on a 1994
    analysis which estimated that, generally, as much as 40 to 50 percent
    of the cost of an FTS 2000 telephone call was for local access.
    According to the Assistant Commissioner for Service Development,
    Federal Telecommunications Service, since then the cost of switched
    voice service on FTS 2000, particularly the cost for network
    transport, has dropped significantly.  As a result, GSA's 1994
    analysis may not represent current local access costs.

    Government organizations also obtain various types of
    telephone-related equipment and services through GSA's POTS contract.
    For fiscal year 1995, GSA reported that government organizations
    spent a total of about $41 million under the POTS contract.

    --------------------
    \4 The Central Intelligence Agency (CIA) did not provide us with its
    telecommunications costs for fiscal year 1995.  The agency reported
    that it does not use FTS 2000 services and that the non-FTS 2000
    information requested was classified.  The CIA added that it had
    recently provided information services costs to the congressional
    appropriations committees in its classified budget submissions.

       BACKGROUND
    ------------------------------------------------------------ Letter :2

    Telecommunications--the electronic transmission of information of any
    type, including voice, data, and video--are vital to government
    agencies.  Long-distance voice and data communications, provided by
    the federal government's FTS 2000 program, as well as other services
    provided by hundreds of telephone companies, help government agencies
    to carry out various missions and provide service to millions of
    customers around the world.

    The FTS 2000 program was established under GSA's leadership to
    provide inter-city communications--basic long-distance service--to
    federal agencies at a lower cost than regular commercial telephone
    service.\5 The government began using FTS 2000 in 1989.  The FTS 2000
    network provides basic switched service for voice, packet switched
    service for data, video transmission service, and other categories of
    services\6

    that support almost 1.7 million federal government users
    nationwide.\7

    Through GSA, federal organizations obtain FTS 2000 services from one
    of two contract carriers--AT&T or Sprint.  Federal organizations are
    charged a fee for each type of basic long-distance service they use
    under the FTS 2000 program.  Among other things, this fee covers the
    contract carrier's costs for transporting voice, data, or video over
    its network as well as charges the carrier pays other telephone
    companies for local access, which is the interconnection of the FTS
    2000 network to local telephone company networks.  The fee federal
    organizations pay for services they use under the FTS 2000 program
    also includes an 8-percent fee to cover GSA's cost to administer the
    program.

    In addition to FTS 2000, federal organizations also contract with
    private industry for other types of telecommunications services and
    support.  Specifically, this includes:

      -- international communications and domestic long-distance service
         in geographic areas where FTS 2000 is not available or in cases
         where GSA has granted an agency exception to the use of FTS 2000
         services;\8

      -- local telephone and other related services;

      -- wireless services such as cellular phones, paging, and
         satellite; and

      -- support contract services such as maintenance for communications
         equipment.

    Federal organizations also use GSA's POTS contract to obtain
    telecommunications services.  This GSA-managed contract allows
    federal organizations to purchase and install, maintain, repair,
    remove, and relocate new and used telephone equipment.  While
    government agencies use POTS to obtain various types of
    telecommunications equipment, such as telephones, electronic key
    systems, and cable and wiring, POTS is also used to obtain
    maintenance and repair services on government-owned telephone
    equipment.

    --------------------
    \5 International long-distance service is not available under the FTS
    2000 program.

    \6 A glossary of telecommunications services is included at the end
    of this report.

    \7 With a few exceptions, use of FTS 2000 services is mandatory for
    executive branch departments and agencies unless they are granted an
    exemption by GSA.

    \8 Federal Information Resources Management Regulation, Part
    201-24.001.

       SCOPE AND METHODOLOGY
    ------------------------------------------------------------ Letter :3

    To identify telecommunications services costs, we developed and sent
    a questionnaire to 42 federal organizations requesting that they
    report fiscal year 1995 costs for FTS 2000 services, non-FTS 2000
    long-distance services, local telecommunications services, wireless
    services, and telecommunications support contract services.  As
    agreed with your offices, our survey included the 14 executive branch
    departments and 28 of the government's largest agencies and
    organizations--those which employ about 1000 or more full-time
    equivalent staff.\9

    To validate our questionnaire, we pretested it with GSA and the
    Department of the Interior to ensure that it properly defined and
    included all telecommunications services cost categories.  We also
    obtained information from GSA showing total charges paid by federal
    organizations under POTS contracts during fiscal year 1995 and the
    estimated percentage of FTS 2000 costs that government agencies are
    charged for local access.  As also agreed with your offices, we did
    not independently verify the accuracy of the cost information
    provided by federal organizations.  However, we discussed the cost
    information with each federal organization to confirm that our report
    presented the information as they had provided it to us.  We also
    consulted with them to confirm our understanding of all responses and
    to discuss and clarify questions we had about the information the
    organizations provided.  Appendix I provides further details on our
    scope and methodology.  Appendix II lists the departments and
    agencies we surveyed, and our questionnaire is reproduced in appendix
    III.

    We conducted our work from February 1996 through May 1996 in
    accordance with generally accepted government auditing standards,
    except we did not independently verify the accuracy of the cost
    information provided by federal organizations during our review.  We
    provided a draft of this report to GSA and the Office of Management
    and Budget (OMB) for comment.  We have incorporated comments as
    appropriate.

    --------------------
    \9 Forty-one federal organizations provided cost information in
    response to our survey.  As noted earlier, the CIA did not provide
    its telecommunications costs for fiscal year 1995.

       AGENCY REPORTED FISCAL YEAR
       1995
       COSTS FOR TELECOMMUNICATIONS
       SERVICES
    ------------------------------------------------------------ Letter :4

    Federal organizations we surveyed reported that they spent about $2.4
    billion in fiscal year 1995 for telecommunications services.
    Telecommunications costs reported by the organizations included about
    $761 million for FTS 2000 services, $379 million for non-FTS 2000
    long-distance services, $700 million for local services, $33 million
    for wireless services, and $511 million for support contract
    services.  Figure 1 provides agency reported costs for each category
    of service.

       Figure 1:  Fiscal Year 1995
       Telecommunications Costs by
       Federal Organization

       (See figure in printed
       edition.)

       (See figure in printed
       edition.)

    It is important to note that about 50 percent of the federal
    organizations responding to our survey had to estimate costs for at
    least one category of service because actual costs were unknown.
    Moreover, because organizations did not include complete information
    in some cases, cost estimates understate actual costs.  For example,
    estimated costs given by the Department of Transportation are
    understated because these costs do not include operational
    communications costs paid by the Federal Aviation Administration.
    Similarly, the Department of Agriculture's cost estimates also
    understate actual costs because the Department did not include
    comprehensive cost figures for all the telecommunications services
    used by some agencies, including the Forest Service and the Food
    Safety and Inspection Service.

    We also obtained fiscal year 1995 FTS 2000 cost information from GSA
    and compared this with cost information provided by the federal
    organizations in our survey.  According to our survey, 40 federal
    organizations reported spending a total of about $761 million on FTS
    2000 services.\10 In comparison, GSA information showed that the same
    40 federal organizations spent about $720 million for FTS 2000
    services.  Our analysis of these differences showed that more than
    half of these organizations reported different FTS 2000 costs than
    GSA.  In this regard, 18 organizations reported the same FTS 2000
    costs as GSA or costs that differed with GSA by less than 1 percent.
    Another 11 organizations reported costs that differed with GSA by up
    to 10 percent and 11 more organizations reported cost differences
    greater than 10 percent.

    Of the 11 organizations that reported having differences greater than
    10 percent, 3 organizations--including the Federal Emergency
    Management Agency (FEMA), the Panama Canal Commission, and the
    Department of Transportation--reported FTS 2000 costs totaling more
    than twice what GSA reported.  The Panama Canal Commission and FEMA
    were unable to explain the reason for these differences.  The
    Department of Transportation attributed most of the differences to
    FTS 2000 charges that are billed through the Department of Defense.

    Appendix IV shows overall telecommunications costs reported by all
    federal organizations we surveyed for each one of the five categories
    of service, and appendix V provides details on each federal
    organization's response to our survey and GSA's reported costs for
    FTS 2000 services.

    --------------------
    \10 The Federal Reserve System does not use FTS 2000 and the CIA did
    not provide FTS 2000 cost information.

       FTS 2000 LOCAL ACCESS CHARGES
       AND POTS CONTRACT COSTS
    ------------------------------------------------------------ Letter :5

    Since charges incurred by federal organizations for local access
    under the FTS 2000 program are not identified separately in pricing
    information by AT&T and Sprint--the government's two FTS 2000 service
    providers--we asked GSA for these costs.  The latest information GSA
    could provide on local access was based on a 1994 analysis which
    estimated that, generally, as much as 40 to 50 percent of the cost of
    an FTS 2000 telephone call was for local access.  According to the
    Assistant Commissioner for Service Development, Federal
    Telecommunications Service, since then the cost of switched voice
    service on FTS 2000, particularly the cost for network transport, has
    dropped significantly.  As a result, GSA's 1994 analysis may not
    represent current local access costs.

    Federal organizations also use GSA's POTS contract to purchase
    various types of telephone-related equipment and services.  For
    fiscal year 1995, GSA reported that federal organizations spent about
    $41 million for telecommunications equipment and services under the
    GSA POTS contract.  Figure 2 shows federal organizations' reported
    expenditures under the POTS contract during fiscal year 1995.

       Figure 2:  Purchase of
       Telecommunications and Services
       Contract Costs by Federal
       Organization

       (See figure in printed
       edition.)

       (See figure in printed
       edition.)

       AGENCY COMMENTS
    ------------------------------------------------------------ Letter :6

    We provided a draft of this report to OMB and GSA for comment.  An
    OMB official stated that the report contained very useful information
    and made a few technical suggestions, which we incorporated as
    appropriate.  GSA had no comments.

    ---------------------------------------------------------- Letter :6.1

    As agreed with your offices, unless you publicly announce the
    contents of this report earlier, we will not distribute it until 30
    days from its issue date.  At that time we will send copies to the
    House Committee on Appropriations; the Administrator, General
    Services Administration; the Director, Office of Management and
    Budget; all federal departments and agencies included in this report;
    and other interested parties.  Copies will also be made available to
    others upon request.

    Please contact me at (202) 512-6240 if you or your staff have any
    questions.  Major contributors to this report are listed in appendix
    VI.

    Jack L.  Brock, Jr.
    Director, Information Resources
      Management/General Government Issues

    SCOPE AND METHODOLOGY
    =========================================================== Appendix I

    To identify government agencies' telecommunications services costs,
    we surveyed 42 federal organizations about their fiscal year 1995
    telecommunications expenditures.  As agreed with the requesters, our
    survey included the government's 14 executive branch departments as
    well as 28 of the largest agencies and organizations--those which
    employ at least 1000 full-time equivalent staff.

    Also as agreed with the requesters, we obtained cost data for five
    major categories of telecommunications services, which included FTS
    2000 services, non-FTS 2000 long-distance services, local
    telecommunications services, wireless services, and
    telecommunications support contract services.  Under each category of
    service, we asked that cost information be broken out by specific
    types of service, such as switched voice and switched data service.

    To ensure that our survey was as comprehensive and complete as
    possible, we researched telecommunications-related materials to
    identify the specific types of telecommunications services under each
    major category.  This included a thorough review of government
    telecommunications regulations and guidelines, GSA literature and
    published reports describing FTS 2000 and non-FTS 2000 services,
    telephone company and vendor information discussing
    telecommunications services offered to the federal government,
    numerous agency reports, and other telecommunications-related
    documentation and materials.

    Based on our research, we prepared a draft questionnaire and a
    detailed glossary that defined the key telecommunications terminology
    discussed in our questionnaire.  We discussed the content and format
    of our draft questionnaire with GSA and made modifications based on
    these discussions to ensure that the (1) terminology was unambiguous
    and clearly defined and (2) questions included in the questionnaire
    were relevant and appropriate.  We conducted pretests with selected
    agencies including GSA and the Department of the Interior.  Comments
    obtained during the pretests were used to further refine the content
    and format of the questionnaire to ensure its effectiveness as a tool
    for identifying telecommunications services cost information.

    We also obtained information from GSA to identify agency charges paid
    under POTS contracts during fiscal year 1995.  Information was not
    available showing actual FTS 2000 local access charges paid during
    fiscal year 1995 because FTS 2000 vendors do not distinguish these
    charges from others in FTS 2000 pricing information.  We were able to
    obtain GSA estimates, based on a 1994 analysis, showing what
    percentage of the cost of an FTS 2000 telephone call was for local
    access.  According to the Assistant Commissioner for Service
    Development, Federal Telecommunications Service, since then the cost
    of switched voice service on FTS 2000, particularly the cost for
    network transport, has dropped significantly.  As a result, GSA's
    1994 analysis may not represent current local access costs.

    As agreed with the requesters, we did not independently verify the
    accuracy of the information provided by the federal organizations.
    However, we discussed the cost information with each federal
    organization to confirm that our report presented the information as
    they provided it to us.  We also consulted with them to confirm our
    understanding of all responses and to discuss and clarify questions
    we had about the information the organizations had provided.

    Although we asked each federal organization to identify its
    telecommunications costs as either actual or estimated, many
    organizations did not do so.  Therefore, we contacted representatives
    from each organization to obtain additional information and ask them
    to describe the cost data they provided in terms of actual costs,
    estimated costs, or costs that were either incomplete, unavailable,
    or unknown for each of the five types of telecommunications services
    covered by our questionnaire.  To assist them in describing their
    data, we developed the following list of categories for the
    organizations to use.  We also used these categories as footnotes in
    appendix V to note how each federal organization described its data.

    a.The totals for this category of telecommunications service and the
    breakouts are actual amounts.

    b.The totals for this category of telecommunications service are
    actual amounts, but the breakouts are estimates.

    c.The totals for this category of telecommunications service show
    estimates and the breakouts are either estimated, unavailable, or
    unknown amounts.

    d.The totals for this category of telecommunications service show
    actual amounts and the breakouts are either unavailable or unknown
    amounts.

    e.Costs are unavailable or unknown.

    In presenting the cost information provided by each department and
    agency (see appendix V), we also included footnotes as appropriate to
    describe special circumstances that affected the accuracy and
    completeness of agency cost data.

    We also compared FTS 2000 costs that federal organizations reported
    on our survey with FTS 2000 cost information from GSA, the billing
    agent for all the agencies using FTS 2000 services.  In doing so, we
    noted some differences between GSA's FTS 2000 costs and FTS 2000
    costs reported by federal organizations and attempted to reconcile
    these differences with GSA and the respective organizations.  Our
    work was performed in Washington, D.C.  We conducted our work from
    February 1996 through May 1996 in accordance with generally accepted
    government auditing standards except that we did not independently
    verify the accuracy of the data that the federal organizations
    provided to us.  We provided a draft of this report to GSA and the
    Office of Management and Budget for comment.  We have incorporated
    comments as appropriate.

    FEDERAL ORGANIZATIONS SURVEYED BY
    GAO
    ========================================================== Appendix II

    EXECUTIVE BRANCH DEPARTMENTS

    Agriculture
    Commerce
    Defense
    Education
    Energy
    Health and Human Services
    Housing and Urban Development
    Interior
    Justice
    Labor
    State
    Transportation
    Treasury
    Veterans Affairs

    AGENCIES AND OTHER ORGANIZATIONS

    Agency for International Development
    Central Intelligence Agency\1
    Environmental Protection Agency
    Equal Opportunity Employment Commission
    Executive Office of the President\2
    Federal Communications Commission
    Federal Deposit Insurance Corporation
    Federal Emergency Management Agency
    Federal Reserve System
    Federal Trade Commission
    General Services Administration
    National Aeronautics and Space Administration
    National Archives and Records Administration
    National Labor Relations Board
    National Science Foundation
    Nuclear Regulatory Commission
    Office of Personnel Management
    Panama Canal Commission
    Peace Corps
    Railroad Retirement Board
    Securities and Exchange Commission
    Small Business Administration
    Smithsonian Institution
    Social Security Administration
    Tennessee Valley Authority
    United States Army Corps of Engineers
    United States Information Agency
    United States Postal Service

    --------------------
    \1 As noted earlier, the Central Intelligence Agency reported that it
    did not spend any money on FTS 2000 services in fiscal year 1995 and
    would not provide us with the amount it spent on non-FTS 2000
    telecommunications services because this information was classified.
    The CIA further noted that it had already reported information
    services costs to the congressional appropriations committees in the
    agency's recent classified budget submissions.

    \2 For this survey, the Executive Office of the President provided
    cost information for the following offices:  Council of Economic
    Advisers; Office of Policy Development; Office of Administration;
    Office of Science and Technology Policy; White House Office; Office
    of National Drug Control Policy; Council of Environmental Quality;
    National Security Council; Office of Management and Budget; United
    States Trade Representative; Office of the Vice President; and the
    Vice President's residence.

    GAO SURVEY QUESTIONNAIRE
    ========================================================= Appendix III

       (See figure in printed
       edition.)

       (See figure in printed
       edition.)

       (See figure in printed
       edition.)

    TOTAL TELECOMMUNICATIONS COSTS FOR
    FISCAL YEAR 1995 BY CATEGORY OF
    SERVICE
    ========================================================== Appendix IV

       (See figure in printed
       edition.)

    DETAILED SUMMARY OF AGENCY
    RESPONSES TO GAO'S SURVEY AND
    GSA'S REPORTED COSTS FOR FTS 2000
    SERVICES
    =========================================================== Appendix V

    This appendix presents detailed summaries of the fiscal year 1995
    telecommunications cost information reported by each federal
    organization in our survey.  Each organization's reported costs are
    arranged according to the five major types of services--FTS 2000,
    non-FTS 2000, local, wireless, and support contract.  In addition, we
    included FTS 2000 costs provided by GSA.  As noted earlier, the
    information presented here reflects costs as they were reported by
    each federal organization and GSA and we did not verify the accuracy
    of any of this information.

       (See figure in printed
       edition.)

       (See figure in printed
       edition.)

       (See figure in printed
       edition.)

       (See figure in printed
       edition.)

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       edition.)

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       edition.)

    MAJOR CONTRIBUTORS TO THIS REPORT
    ========================================================== Appendix VI

    ACCOUNTING AND INFORMATION
    MANAGEMENT DIVISION, WASHINGTON,
    D.C.

    Steve A.  Schwartz, Project Director
    Mark D.  Shaw, Project Manager
    William D.  Hadesty, Technical Assistant Director
    Mirko J.  Dolak, Technical Assistant Director
    Franklin W.  Deffer, Assistant Director
    Ronald B.  Bageant, Assistant Director
    Patricia M.  Macauley, Senior Information Systems Analyst
    Brenda A.  James, Senior Information Systems Analyst
    Mary T.  Marshall, Information Systems Analyst
    Cristina T.  Chaplain, Communications Analyst
    James F.  Loschiavo, Technical Assistance Specialist

    GLOSSARY
    =========================================================== Appendix 0

          ALLOCATED FTS 2000 SERVICE
    ------------------------------------------------------- Appendix 0:0.1

    Switches are owned by GSA and shared by more than one customer
    agency.  Telephone numbers and calls are not identifiable; therefore,
    GSA prorates the monthly charges to the customer based upon the
    number of lines each agency has at that location.

          DEDICATED TRANSMISSION
          SERVICES
    ------------------------------------------------------- Appendix 0:0.2

    A telecommunications service for which the private line transmission
    of voice or data on a dedicated circuit between two or more end
    locations is continuously available and from which pricing is not
    sensitive to the numbers of minutes or calls.

          EXCLUSIVE FTS 2000 SERVICE
    ------------------------------------------------------- Appendix 0:0.3

    Agency managed switches owned or leased by a specific agency.
    Telephone numbers and calls are identifiable to the agency user.

          FEDCARD
    ------------------------------------------------------- Appendix 0:0.4

    Federal telephone calling cards that allow callers to make certain
    types of calls from off-net locations.

          ISDN
    ------------------------------------------------------- Appendix 0:0.5

    Integrated Services Digital Network.  A network that provides
    end-to-end connectivity to support a wide range of services,
    including voice and nonvoice services not provided by FTS 2000.

          LOCAL SWITCHED VOICE & DATA
    ------------------------------------------------------- Appendix 0:0.6

    At a minimum, costs under this category should include any line
    charges (dial tone), message units (usage), and any enhanced
    features, such as call waiting, call forwarding, etc.

          PACKET SWITCHED SERVICES
    ------------------------------------------------------- Appendix 0:0.7

    A service in which messages are broken down into smaller units called
    packets, which are then individually addressed and routed through the
    network, including x.25 packet, frame relay, SMDS, and ATM.

          SWITCHED DATA SERVICE
    ------------------------------------------------------- Appendix 0:0.8

    A circuit switched telecommunications service which has the
    capability of transmitting data at rates of 56 to 64 kilobits per
    second over conditioned access lines.

          SWITCHED DIGITAL INTEGRATED
          SERVICES (SDIS)
    ------------------------------------------------------- Appendix 0:0.9

    SDIS provides the capability of integrating voice, data, image, and
    video services by means of digital connectivity to FTS 2000 users.

          SWITCHED VOICE SERVICE
    ------------------------------------------------------ Appendix 0:0.10

    A circuit switched telecommunications service which has the
    capability of transmitting voice or data.

          TELEPHONE CALLING CARDS
    ------------------------------------------------------ Appendix 0:0.11

    Commercial telephone calling cards that allow callers to make certain
    types of calls from off-net locations.

          VOICE MAIL SERVICE
    ------------------------------------------------------ Appendix 0:0.12

    This category includes standalone voice mail services or systems that
    are provided separately from local service.

    *** End of document. ***