Total voice connections, which measures FiOS Digital Voice connections in addition to traditional switched access lines, declined 7.9 percent to 25.0 million - the smallest year-over-year decline since second-quarter 2007.

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The company saw a 14.3% drop in primary residential switched-access phone lines, as consumers continued to move toward voice over IP and mobile devices for most of their voice calls.

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What's more, Capellas has ratcheted up pressure on rivals this year by migrating 10% of MCI's phone calls from old circuit-switched networks--subject to those antiquated access fees--to the Internet, which is free of them.

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