November 7, 2002

The Michigan Public Service Commission today granted Universal Telecom, Inc. and OnePoint Communications – Illinois, LLC licenses to provide basic local telephone service in Michigan.  The Commission approved the licenses because it determined 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.  Universal and OnePoint join 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 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.

Universal received a license to provide basic local telephone service in the telephone exchanges currently served by Verizon North Inc., Contel of the South, Inc., d/b/a Verizon North Systems, Ameritech Michigan, CenturyTel of Michigan, Inc., CenturyTel Midwest-Michigan, Inc., CenturyTel of Upper Michigan, Inc., CenturyTel of Northern Michigan, Inc., TDS Telecom/Island Telephone Company, TDS Telecom/Shiawassee Telephone Company, TDS Telecom/Chatham Telephone Company, TDS Telecom/Wolverine Telephone Company, TDS Telecom/Communication Corporation of Michigan and Frontier Communications of Michigan, Inc.  Telephone exchanges are geographic boundaries that define customers' local calling areas.  Universal applied for a license on July 5, 2002, and filed a supplement to its application on August 16, 2002.

OnePoint was granted a license to provide basic local telephone service in the telephone exchanges currently served by Ameritech Michigan, Verizon North Inc., and Contel of the South, Inc., d/b/a Verizon North Systems.  OnePoint applied for a license on July 19, 2002.   

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

Universal and OnePoint are headquartered in LaGrange, Kentucky and Lake Forest, Illinois, respectively.

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


Cases Nos. U-13468, U-13485


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