Products and Services Revenue

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Products and Services Revenue

Products and Services Revenue

We are an integrated communications company engaged primarily in providing an array of communications services, including local voice, broadband, private line (including business data services), Ethernet, network access, information technology and other ancillary services. We strive to maintain our customer relationships by, among other things, bundling our service offerings to provide our customers with a complete offering of integrated communications services.

We categorize our products, services and revenue among the following six categories:

•IP and Data Services, which include primarily VPN data networks, Ethernet, IP and other ancillary services;

•Transport and Infrastructure, which include broadband, private line (including business data services) and other ancillary services;

•Voice and Collaboration, which includes primarily local voice, including wholesale voice, and other ancillary services;

•IT and Managed Services, which include information technology services and managed services, which may be purchased in conjunction with our other network services;

•Regulatory Revenue, which consist of Connect America Fund ("CAF") support payments and other operating revenue. We receive federal support payments from the federal CAF program. These support payments are government subsidies designed to reimburse us for various costs related to certain telecommunications services including the costs of deploying, maintaining and operating voice and broadband infrastructure in high-cost rural areas where we are not able to fully recover our costs from our customers; and

•Affiliate Services, which are telecommunication services that we also provide to external customers. In addition, we provide to our affiliates computer system development and support services, network support and technical services.

From time to time, we may change the categorization of our products and services.

Our operating revenue for our products and services consisted of the following categories:

	Three Months Ended June 30,			Six Months Ended June 30,
	2020		2019	2020	2019
	(Dollars in millions)
IP and Data Services	$	131	145	267	285
Transport and Infrastructure	651		696	1,308	1,397
Voice and Collaboration	380		419	775	837
IT and Managed Services	—		1	1	2
Regulatory Revenue	45		47	91	95
Affiliate Services	592		720	1,275	1,442
Total operating revenue	$	1,799	2,028	3,717	4,058