Ameritech Michigan v. Public Service Commission

460 Mich. 396
CourtMichigan Supreme Court
DecidedJuly 8, 1999
DocketDocket Nos. 112363, 112364, 122367-112369
StatusPublished
Cited by3 cases

This text of 460 Mich. 396 (Ameritech Michigan v. Public Service Commission) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ameritech Michigan v. Public Service Commission, 460 Mich. 396 (Mich. 1999).

Opinion

Cavanagh, J.

In these consolidated cases, we are called on to address whether Ameritech must provide intraLATA toll dialing parity regardless of whether it is afforded the opportunity to compete in the interLATA market, and to review the appropriateness of various Michigan Public Service Commission (psc) orders that were entered to compel Ameritech to provide such [400]*400parity. For the reasons discussed below, we reverse in part and affirm in part the judgment of the Court of Appeals,1 affirm several orders of the psc, uphold the reversal of other orders of the PSC, and reverse the writ of mandamus issued by the Ingham Circuit Court.

i

A

We begin our review of the convoluted undertakings that form the basis of these actions with reference to the facts of this case as they were ably presented by Judge Smolensk in his opinion for the Court of Appeals, which we quote below.

This case concerns whether Ameritech is required to provide “intraiATA toll dialing parity” in the absence of “interLATA relief."
Before 1982, American Telephone and Telegraph Company, a provider of both local and long distance telephone service, dominated the telecommunications industry.1 The key to AT&T’s domination was its control of local telephone service.2 AT&T provided local telephone service through its numerous Bell operating companies, one of which was Michigan Bell Telephone Company,3 now doing business as Ameritech.
In 1982, AT&T agreed to the entry of a consent decree entitled “Modification of Final Judgment” in federal court (the AT&T consent decree). See, generally, United States v [401]*401American Telephone & Telegraph Co, 552 F Supp 131 (D DC, 1982). For the purpose of ending AT&T’s monopoly over local telephone service, the AT&T consent decree provided that AT&T would divest itself of its Bell operating companies.4 The AT&T consent decree provided that the Bell operating companies would be authorized to provide telephone service only within certain defined geographic regions generally corresponding to telephone area code regions called “local access transport areas.”5 (latas.)6 This service, called intraiATA service, includes local calls, i.e., typically telephone calls within a city or town, as well as toll calls, i.e., calls covering a distance beyond local calls but within the same lata (intraiATA toll calls).7 However, the AT&T consent decree provided that the Bell operating companies were prohibited from providing interiATA service, i.e., telephone service between latas.8 The AT&T consent decree further provided that the interiATA prohibition could be removed when a Bell operating company showed that there was no substantial possibility that it could use its monopoly power to impede competition in the market it sought to enter.9 As a result, at least in part, of the AT&T consent decree, during the 1980s in Michigan a customer’s intraiATA toll calls were carried by a local carrier such as Ameritech while a customer’s interiATA calls were carried by an interexchange (long distance) carrier such as AT&T of Michigan or MCI.10
In the late 1980s, the psc authorized AT&T of Michigan and MCI to begin competing in the Michigan intraiATA toll market.11 However, in order for an interexchange carrier [402]*402such as AT&T of Michigan or MCI to provide service for a customer’s intraLATA toll call, the customer must dial a five-digit “lOxxx” prefix to the number to be called, with the “xxx” being a three-digit identification code assigned to each interexchange carrier. The psc allowed local carriers such as Ameritech to retain the use of what is termed “1 +” or “0 +” dialing, meaning that Ameritech provides service for a customer’s intraLATA toll call when the customer adds only a single digit prefix (either a “1” or “0”) to the number to be called.
These dialing arrangements are the root of this case. MCI and AT&T of Michigan do not like these dialing arrangements for intraLATA toll calls because they believe “1 +” and “0 +” dialing gives Ameritech a substantial competitive advantage in the intraLATA toll market. MCI and AT&T of Michigan want “intraLATA toll dialing parity,” i.e., “uniform 1 + dialing arrangements for all intraLATA service by all providers . . . .” However, Ameritech’s position has always been that it should not be required to provide intraLATA toll dialing parity until it has been accorded “interLATA relief,” i.e., the authority to compete in the interLATA market.
In July 1992, MCI commenced this proceeding in the psc, U-10138, by filing a complaint alleging, in part, that Ameritech was violating various provisions of the Michigan Telecommunications Act, 1991 PA 179, MCL 484.2101 et seq.-, MSA 22.1469(101) et seq. (Act 179 or the MTA), by failing to make intraLATA toll dialing parity available to MCI. At some point, the Attorney General and AT&T of Michigan intervened in this proceeding. Although finding that Ameritech’s failure to provide intraLATA toll dialing parity did not violate Act 179, the psc ultimately determined that implementation of intraLATA toll dialing parity was in the public interest and, in a February 1994 decision, ordered Ameritech to implement intraLATA toll dialing parity in Michigan “no later than January 1, 1996.” The decision also provided that a task force would be established to work out the procedures for implementing intraLATA toll dialing parity. Ameritech moved for a rehearing and reconsideration, which was denied by the PSC in a July 1994 decision.
[403]*403After the task force submitted a report to the psc containing certain recommendations and noting certain disputed issues, the PSC issued a March 1995 decision in which it ordered Ameritech to begin implementing intraLATA toll dialing parity on January 1, 1996, in those offices in which it was technically possible to do so and to adopt a firm schedule for converting to intraLATA toll dialing parity for those offices in which it was not technically possible to do so by January 1, 1996. The decision also provided that a fifty-five percent discount on access charges would be imposed on those offices that did not meet the schedule for converting to intraLATA toll dialing parity. Access charges apparently are paid by an interexchange carrier such as AT&T of Michigan and MCI to a local carrier such as Ameritech for the interexchange carrier’s use of the local carrier’s local network during the initial and final link of an intraLATA toll call serviced by the interexchange carrier. In imposing the discount, the psc rejected the contention that the discount was a penalty. The psc reasoned that the discount was warranted because nonconverted access services whereby customers would have to continue to dial five-digit access codes plus the number to be called in order for an inter-exchange carrier to service an intraLATA toll call were of lesser quality than converted access services whereby an interexchange carrier would service the call simply when customers dialed a one-digit prefix plus the number to be called.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Canales Complaint
637 N.W.2d 236 (Michigan Court of Appeals, 2001)
In Re COMPLAINT OF BIERMAN AGAINST CENTURYTEL OF MICHIGAN, INC
627 N.W.2d 632 (Michigan Court of Appeals, 2001)
In Re MCI Telecommunications Complaint
596 N.W.2d 164 (Michigan Supreme Court, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
460 Mich. 396, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ameritech-michigan-v-public-service-commission-mich-1999.