June 21, 2007

The Michigan Public Service Commission (MPSC) today issued its seventh annual report on the status of telecommunications competition in Michigan. The report, required by the Michigan Telecommunications Act (MTA) as amended in 2005, primarily examines the state of competition in the toll and local exchange service markets in Michigan.

"Michigan is experiencing a significant change in wireline competition because of more technology options, and actions by the Federal Communications Commission (FCC) and the courts that eliminated the obligation of local phone companies to offer competitors phone service at a regulated price, noted MPSC Chairman J. Peter Lark.

"It is clear that the growth of the mobile wireless market is a strong force in the telecommunications market today, he observed. "With upgrades to networks, innovative bundles of wireless minutes and other services, and phones that are able to act as portable music players and access advanced multi-media, wireless telecommunications providers will continue to affect wireline competition in Michigan in the future."

Highlights of the report include:

• The total number of wirelines in Michigan decreased by 3.9 percent from the 2005 line count.
   
• Competitive providers hold 18 percent of the total wireline market, a 2 percent reduction from 2005.
  
  
• The total number of competitive lines decreased 17 percent from 2005.
  
  
• AT&T Michigan's share of the market was 65.5 percent, up 2.9 percent from 2005.
  
  
• Wireless subscriptions continue to increase in Michigan, with the FCC reporting an increase of 633,403 Michigan customers from 2005 to 2006.
  
  
• There are over 47,000 subscribers of Voice over Internet Protocol (VOIP) in Michigan, 68 percent of whom are residential customers.
  
  
• The FCC reports that Michigan has over 1.7 million high-speed Internet lines. For certain telecommunications companies, some of the decrease in their wireline connections may in fact be offset by customers switching to wireless or VOIP service provided by the same company or one of its affiliates.

"The Commission continues to ensure a just and reasonable primary basic local exchange service (PBLES) rate; enforce basic consumer protections, including prohibitions against slamming and cramming; and resolve disputes that arise under the Michigan Telecommunications Act," Lark added.

The entire report is available on the MPSC Web site: michigan.gov/mpsc.

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