TPOC 2006 Annual Report
Telecommunications Planning and Oversight Council
November 1, 2006
Trends in TEX-AN 2000 Use
TEX-AN 2000 is a cost-effective and efficient telecommunications resource that provides a variety of state-approved products and services to state and local government and institutions of public education. While state agencies are mandated to use the network, other customers are not. The following content depicts trends in network use by both state agency and non-state agency customers over the last four fiscal years. [17]
Customer Base and revenue
State agencies currently make up 25 percent of the customer base for TEX-AN 2000 and provide 77% of the revenue.
Breakdown of Customer Base and Revenue
| State Agency |
170 |
162 |
152 |
151 |
$46.45 |
$40.14 |
$40.32 |
$47.22 |
| Non-State Agency |
| Higher Education |
104 |
99 |
98 |
102 |
$7.35 |
$5.68 |
$5.02 |
$4.76 |
| K–12 Education |
71 |
72 |
69 |
85 |
$3.38 |
$2.98 |
$2.91 |
$3.08 |
| Local Government |
130 |
135 |
117 |
120 |
$2.58 |
$2.45 |
$1.65 |
$1.54 |
| Other |
94 |
89 |
128 |
138 |
$4.14 |
$3.95 |
$4.41 |
$4.66 |
| Total Non-State Agency |
399 |
395 |
412 |
445 |
$17.45 |
$15.06 |
$13.99 |
$14.04 |
| Total |
569 |
557 |
564 |
596 |
$63.90 |
$55.20 |
$54.31 |
$61.26 |
Percentage of Customer Base and Revenue
| State Agency |
29.88% |
29.08% |
26.95% |
25.34% |
72.69% |
72.72% |
74.24% |
77.08% |
| Non-State Agency |
| Higher Education |
18.28% |
17.77% |
17.38% |
17.11% |
11.50% |
10.29% |
9.24% |
7.78% |
| K–12 Education |
12.48% |
12.93% |
12.23% |
14.26% |
5.29% |
5.40% |
5.36% |
5.03% |
| Local Government |
22.84% |
24.24% |
20.74% |
20.13% |
4.03% |
4.43% |
3.04% |
2.51% |
| Other |
16.52% |
15.98% |
22.70% |
23.15% |
6.49% |
7.16% |
8.12% |
7.60% |
| Total Non-State Agency |
70.12% |
70.92% |
73.05% |
74.66% |
27.31% |
27.28% |
25.76% |
22.92% |
| Total |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
100% |
The top 30 customers, listed in Appendix E, make up 80 percent of TEX-AN 2000 revenues. The following chart divides these revenues according to top customer categories.
Percentage of Revenue by Top Customers
| 2 |
26% |
25% |
32% |
| 5 |
44% |
42% |
48% |
| 10 |
56% |
58% |
63% |
| 15 |
64% |
67% |
71% |
| 20 |
70% |
72% |
75% |
| 25 |
73% |
75% |
78% |
| 30 |
76% |
77% |
80% |
Revenue and Usage
The following chart depicts TEX-AN revenues for fiscal 2003 through fiscal 2006.
TEX-AN 2000 Fiscal Year Revenues by Month (Dollars in Millions)
| FY 2002 |
$5.76 |
$11.47 |
$16.92 |
$21.89 |
$27.89 |
$33.14 |
$38.61 |
$44.72 |
$50.68 |
$56.32 |
$62.18 |
$68.28 |
| FY 2003 |
$5.53 |
$11.04 |
$16.71 |
$21.95 |
$27.61 |
$32.81 |
$38.21 |
$43.46 |
$48.59 |
$53.66 |
$58.87 |
$63.90 |
| FY 2004 |
$5.03 |
$10.11 |
$14.52 |
$18.91 |
$23.73 |
$28.26 |
$32.82 |
$37.33 |
$41.74 |
$46.28 |
$50.71 |
$55.20 |
| FY 2005 |
$4.84 |
$9.38 |
$13.81 |
$18.13 |
$22.74 |
$27.17 |
$31.68 |
$36.11 |
$40.61 |
$45.00 |
$49.47 |
$54.31 |
The variation in TEX-AN revenue can be attributed to the following factors:
- Fiscal 2002–2003 – Revenue from sales to state universities decreased substantially after they were exempted from having to use TEX-AN 2000 for their telecommunications needs.
- Fiscal 2004 – Decrease in revenue is attributed to reductions in long distance voice and Internet rates, as well as reductions in DIR’s operational overhead rates and rate markups for TEX-AN 2000 services.
- Fiscal 2005 – Rate reductions resulted in reduced revenue totals.
The following charts portray voice and data usage for TEX-AN 2000.
TEX-AN 2000 Voice Usage (Numbers in Millions)
| Intrastate calls |
48 |
44 |
44 |
45 |
| Intrastate minutes |
140 |
129 |
130 |
129 |
| Interstate calls |
9 |
7 |
8 |
8 |
| Interstate minutes |
28 |
24 |
24 |
25 |
| International calls |
0.3 |
0.3 |
0.3 |
0.28 |
| International minutes |
1.4 |
1.2 |
1.3 |
1.0 |
| Toll-free calls |
59 |
69 |
61 |
76 |
| Toll-free minutes |
213 |
214 |
197 |
247 |
DIR has seen a significant reduction in long distance usage since 2003. This reduction is attributed to increased use of e-mail, mobile/wireless phones, instant messaging, and other communications devices.
DIR anticipates that the growth of VOIP and toll bypass solutions will continue and result in further decreases in long distance usage. DIR will continue to review and analyze the long distance usage to identify trends and impacts.
Fiscal 2006 TEX-AN 2000 Circuits
Circuit Baseline for Future Comparisons
Total Circuits: 6,447
Broadband Circuits (T-1 and Higher) as a percent of total circuits
Broadband: 75%
Non-Broadband: 25%
Estimated Ratio of Voice to Data Circuits
Voice: 9%
Data: 91%
Currently, TEX-AN supports 596 customers with more than 4,500 broadband circuits across 600 cities and within nearly every county in Texas. DIR will use this baseline to track growth of broadband usage.
