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Local Exchange Competition Moves Forward in Michigan

Fortnightly Magazine - May 15 1995

The Michigan Public Service Commission (PSC) has approved terms for interconnection and mutual compensation between Ameritech Michigan, a dominant local exchange carrier (LEC), and City Signal, Inc., a newly certificated competitive provider of LEC services. The move marks another step in the PSC's experiment with local telephone competition in the Grand Rapids exchange. (An earlier PSC had granted City Signal a license to provide local service in Grand Rapids in competition with Ameritech.) The PSC rejected a proposal by Ameritech to delay implementation of the interconnection tariffs until such time as it is permitted to provide long distance services. (On April 4, 1995, the U.S. Justice Department announced a proposal to allow Ameritech to provide long-distance services in Grand Rapids and Chicago, two areas where the LEC is subject to competition for local exchange services.)

The PSC ruled that Ameritech should offer its competitors interconnection arrangements and directory listings on the same terms it offers adjacent LECs. In addition, it found mutual compensation, unbundling, and number portability necessary for competition and an integral part of the interconnection tariff. To accomplish number portability for customers switching to a new LEC, the PSC directed Ameritech to make direct inward dialing and remote call forwarding available to City Signal at incremental cost. Re City Signal, Inc., Case No. U-10647, Feb. 23, 1995 (Mich.P.S.C.).

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