May 18, 2004

The Michigan Public Service Commission (MPSC) today granted Spectrotel, Inc. a license to provide basic local exchange service.

The Commission approved the license because it determined that Spectrotel possesses sufficient technical, financial and managerial resources and abilities to provide basic local telephone service within the geographic area of the license. The Commission concluded that competition for telephone service is advantageous to Michigan residents. By granting this request for a license, opportunities for competition may expand.

The Commission conditioned the license 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 license upon the company providing service to customers within a reasonable time, indicating that a failure to comply may result in revocation of its license or other penalties. Further, the Commission noted that any numbers obtained by the company are a public resource and are not owned by the company. Therefore, if the company fails to provide service or go out of business, any numbers assigned are subject to reclamation.

Spectrotel was granted a license to provide basic local exchange service in exchanges currently served by Verizon North Inc., Verizon North Systems and SBC Michigan. The company applied for a license on Jan. 26, 2004.

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

Spectrotel Inc. is headquartered in Shrewsbury, N.J.

The MPSC is an agency within the Department of Labor & Economic Growth.

Case No. U-14018

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