Michigan Attorney General Mike Cox Opposes Local Telephone Rate Hikes, Applauds Public Service Commission Decision to Review Application
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[March 27, 2006]

Michigan Attorney General Mike Cox Opposes Local Telephone Rate Hikes, Applauds Public Service Commission Decision to Review Application

LANSING, Mich., March 27 /PRNewswire/ -- Attorney General Mike Cox, who is objecting to Verizon and AT&T's applications to increase the rates for their new 100-local call plan, said today that the decision by the Public Service Commission last week to grant a 7-day comment period to allow providers an opportunity to respond to his objection is a positive sign for Michigan consumers.


"I don't believe that it was the Legislature's intent to force a rate increase upon customers who make the fewest calls and can probably least afford such a rate increase," said Cox. "In addition, I don't believe it makes sense to approve these increases without further examination by all interested parties, including consumer groups."
The recently re-enacted Michigan Telecommunications Act (MTA) requires all local telephone service providers to offer a basic local phone service plan that includes at least 100 calls, not less than 12,000 outgoing minutes per month, and unlimited incoming calls. The re-enacted MTA deregulates the telephone rates for all other services except for this basic local phone service plan and requires each local telephone service provider to file a tariff regarding this 100-call local plan in order for the rate to take effect by April 1, 2006.
The applications seek to raise the local phone rates between $1.20 and $1.80 a month. The Attorney General argues that the increases in the basic local phone service plan are not what was intended by the MTA.
"I am pleased that the Public Service Commission has reviewed my objections and has given the providers a chance to respond. Hopefully, after reviewing the arguments of both sides, the Commission will see that these increases are unwarranted, illegal, and contrary to what was understood when the Telecommunication Act was enacted last year," said Cox.
Michigan Attorney General

CONTACT: Rusty Hills of Department of Attorney General, +1-517-373-8060



Web site: http://www.michigan.gov/ag

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