September 11, 2003

The Michigan Public Service Commission (MPSC) today granted The Farm Bureau Connection and CM Tel (USA) LLC licenses to provide basic local exchange service in Michigan.

The Commission approved the licenses because it determined that Farm Bureau Connection and CM Tel possess sufficient technical, financial and managerial resources and abilities to provide basic local telephone service within the geographic area of the licenses. The Commission concluded that competition for telephone service is advantageous to Michigan residents. By granting these requests for a license, opportunities for competition may expand.

The Commission conditioned the licenses on compliance with the Commission's anti-slamming procedures, the number portability provisions of the Michigan Telecommunications Act, and the Commission's number reclamation process. The Commission also conditioned the licenses upon the companies providing service to customers within a reasonable time, indicating that a failure to comply may result in revocation of their licenses or other penalties. Further, the Commission noted that any numbers obtained by the companies are a public resource and are not owned by the companies. Therefore, if the companies fail to provide service or go out of business, any numbers assigned are subject to reclamation.

The Farm Bureau Connection was granted a license to provide basic local exchange service in the areas currently served by Verizon North, Inc., Verizon North Systems and SBC. The company applied for a license on June 12, 2003.

CM Tel was granted a license to provide basic local exchange service in the zone and exchange areas currently served by Verizon North Inc., Verizon North Systems and SBC. The company applied for a license on June 13, 2003.

Telephone exchanges and zones are geographic boundaries that define a customer's local calling area.

The Farm Bureau Connection and CM Tel will be able to begin providing basic local telephone service once they has finalized interconnection arrangements with other telephone service providers and have filed approved tariffs with the Commission, reflecting the services they will offer and identifying the telephone exchanges in which they will offer service. Interconnection arrangements allow customers to place calls to, and receive them from, customers of other local telephone service providers.

The Farm Bureau Connection is headquartered in Park Ridge, Ill.

CM Tel is headquartered in Los Angeles.

The MPSC is an agency within the Department of Consumer and Industry Services.

Cases Nos. U-13807, U-13810

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http://www.michigan.gov/mpsc/0,1607,7-159-16400_17280---Y,00.html