September 30, 2003

The Michigan Public Service Commission (MPSC) today issued an order approving Carr Telephone Company's application to offer expanded local calling from its Carr exchange to all adjacent exchanges and to 11 non-adjacent exchanges.  The order also approves a rate increase of $4.42 per month to Carr Telephone Company's residential one-party line users and $5.30 per month to its business users.

Carr Telephone Company originally filed an application requesting authority to offer expanded local calling from its Carr exchange to all adjacent exchanges and to 11 non-adjacent exchanges on April 10, 2003.  The MPSC on July 8, 2003 dismissed that application because a disagreement between Carr and Verizon about call routing was not resolved in time to meet the strict filing requirements and time constraints of the Michigan Telecommunications Act.

The MPSC granted Carr's request for a rehearing because Carr has resolved its differences with Verizon over the cost and routing of calls.

Under its expanded local calling plan, Carr customers will be able to place local calls to an additional 16 exchanges, including the SBC Michigan exchanges of Baldwin, Big Rapids, Fountain, Freesoil, Irons, Luther, Manistee, Reed City, Scottville and White Cloud; the Verizon North, Inc., the Verizon North Systems exchanges of Hart, Hesperia, Ludington, Pentwater, and Shelby; and the Dublin exchange of the Kaleva Telephone Company. 

Carr's application also requested and the Commission approved rate increases of $4.42 to its residential one-party line monthly rates and $5.30 to its business rates.  Under this rate structure, customers will receive a monthly 2,000-minute calling allowance for calls placed into the specified exchanges, with additional minutes in excess of the monthly allowance charge at 4 cents a minute.  Local calls occurring entirely within the Carr exchange would not count against the 2,000-minute allowance.  The rates include an intrastate EUCL service charge, touchtone and dialing parity services.  In addition, all calls within the local calling area will be considered local calls whether the calls are included with the 2,000-minute cap or at the 4 cents per minute rate.

The MPSC approved Carr's application for expanded local calling area because it is in the public interest, offering Carr customers the benefits of a greatly expanded local calling area with a reasonable rate increase.

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


Case No. U-13760

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