The Michigan Public Service Commission (MPSC) yesterday issued its third annual report on the status of competition for video services in Michigan.  The report is required by the Uniform Video Services Local Franchise Act (Public Act 480 of 2006).

"With three new companies entering the market in 2009, video and cable competition continues to grow in Michigan, giving customers more options," said MPSC Chairman Orjiakor Isiogu.  "In addition, a 2 percent growth in the number of cable customers, and the investment of hundreds of millions of dollars by providers are positive signs.  And with a dispute resolution process now in place, the MPSC is equipped to handle complaints more effectively."

The report includes sections on the responsibilities and activities of the MPSC; the 2009 commission survey of franchise entities and providers; 2009 legislative activity; conclusions; and recommendations.

Highlights of the report include: 

·         During 2009, 174 municipalities said they had one new provider file for a franchise agreement; 22 said they had at least two new providers file for a franchise agreement; four said they had three new providers file for a franchise agreement; and one said it had four new providers file for a franchise agreement.

·         The three new companies that began offering video/cable services are:  Drenthe Telephone Company, Michigan Cable Partners, and Ace Communications Group.

·         During 2009, providers said Michigan has 2,365,147 video/cable customers in Michigan, an increase of 42,676 from the previous year.

·         Since Jan. 1, 2007 (the date the Act became effective), nine video/cable providers have entered Michigan's market.

·         The top three companies providing video/cable service in Michigan remain the same as 2008:  Comcast, Charter Communications and Wideopenwest Michigan (WOW).

·         The Act was amended in 2009 to provide the MPSC with authority to assist with complaints, and provide customers, providers and franchise entities with a dispute resolution process.

·         The MPSC received 1,025 customer complaints in 2009, similar to the number received in 2008.

·         The most common complaints were related to billing, charges, and credits; channel line-ups; and other issues.

·         No new formal complaints were filed at the MPSC in 2009.  Three formal complaints filed in 2008 were still active during part of 2009.  Of those, one was dismissed; one was dismissed with prejudice; and the third accepted a mediator's decision.

·         Providers report that they have invested $894,207,814 into their Michigan video/cable markets since the Act became effective; in 2009 alone, they invested $269,780,173 in their Michigan markets.

·         The MPSC made two recommendations to the legislature:  changing the due date of the annual report to March 1 from February 1 to provide survey respondents more time to provide information to the MPSC; requiring providers to provide certain contact information to the MPSC.

The entire report is available on the MPSC's Web site (click on the video/cable button): Michigan.gov/mpsc.

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