Table 5
      Annual Changes in Price Indexes for Local and Long Distance Telephone Services


             Local Residential Service     Toll Service *


             CPI:  all localPPI:  Monthly  Interstate Toll CallIntrastate Toll Calls
              charges        Service
                             Charges        CPI       PPI       CPI       PPI

       1978       1.4 %          3.1 %      -0.8 %     0.0 %     1.3 %     0.1 %
       1979       1.7            1.6        -0.7      -0.9       0.1      -0.7
       1980       7.0            7.1         3.4       5.5      -0.6       2.3
       1981      12.6           15.6        14.6      15.9       6.2       8.0
       1982      10.8            9.0         2.6       3.9       4.2       1.7
       1983       3.1            0.2         1.5       0.0       7.4       3.9
       1984      17.2           10.4        -4.3      -5.1       3.6       3.8
       1985       8.9           12.4        -3.7      -3.0       0.6       2.1
       1986       7.1            8.9        -9.4     -10.0       0.3      -3.5
       1987       3.3            2.6       -12.4     -11.8      -3.0      -3.0
       1988       4.5            4.6        -4.2      -2.1      -4.2      -3.8
       1989       0.6            1.9        -1.3      -1.7      -2.6       0.5
       1990       1.0            1.5        -3.7      -0.1      -2.2      -2.2
       1991       5.1            2.1         1.3      -1.3      -1.5      -2.6
       1992       0.5           -0.2        -1.3       1.0      -2.4       1.3
       1993       1.0            0.8         6.5       3.8       0.2      -1.1
       1994      -0.3            0.7         5.4       6.1      -1.0      -1.4
       1995       2.6                     *  0.1            **  -3.8            **


               * CPI toll indexes represent rates for households.   PPI toll indexes
                  represent rate changes for both business and residential consumers.
             ** Comparable PPI indexes were last published for July 1995