March 12, 2003

The Michigan Public Service Commission today granted Trophy Technologies, Inc., d/b/a Rural Communications, and DayStarr, LLC, d/b/a Day Starr Communications, licenses to provide basic local telephone service in Michigan.  The Commission approved the two licenses based on the determination that the companies possess sufficient technical, financial and managerial resources and abilities to provide basic local telephone service to all residential and commercial customers within the geographic area of their licenses and intend to provide service within one year of today's order.  Rural Communications and Day Starr Communications join approximately 190 companies that are currently licensed to provide basic local telephone service in Michigan.

The Commission concluded that competition for local telephone service can be advantageous to Michigan residents and, by granting both these requests for a license, opportunities for competition will expand.  The Commission conditioned the licenses upon full compliance with provisions of the Michigan Telecommunications Act, as well as the Commission's anti-slamming procedures. Failure to comply with those provisions may result in revocation of the license or other penalties.  The Commission also conditioned the licenses upon the companies providing service to customers within a reasonable time, indicating that failure to do so may result in revocation of the license.  Finally, the Commission noted that any numbers obtained by the companies are a public resource and are not owned by the companies.  Therefore, if they fail to provide service or go out of business, any numbers assigned to them are subject to reclamation.

Rural Communications received a license to provide basic local telephone service in the telephone exchanges currently served by Verizon North Inc. and Contel of the South, Inc., d/b/a Verizon North Systems.  Telephone exchanges are geographic boundaries that define customers' local calling areas.  Rural Communications applied for a license on September 20, 2002.

DayStarr Communications was granted a license to provide basic local telephone service in the Bath, Owosso, and South Haven exchanges served by Verizon North Inc. and in the Flushing exchange served by Ameritech Michigan.   

The companies may begin providing basic local telephone service once they have finalized interconnection arrangements with the other telephone service providers and filed approved tariffs with the Commission.  Interconnection arrangements allow customers to place calls to, and receive them from, customers of other local telephone service providers.  Tariffs will reflect the services the companies will offer and identify the telephone exchanges in which they will offer service.  

Rural Communications and DayStarr Communications are headquartered in Three Rivers, Michigan and Corunna, Michigan, respectively.

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


Case Nos. U-13538 and U-13613