LANSING – Local exchange carriers could charge long distance providers for the use of their networks on intrastate long distance calls no more than what the federal government allows carriers to charge on interstate long-distance calls under a bill unanimously passed Wednesday by the Michigan Senate.
Companies with more than 250,000 customers already are limited to charging long-distance providers no more than federal levels on long-distance calls where the two parties on the call are both within Michigan. But companies with 250,000 or fewer customers can charge access rates as they see fit.
Under the bill (HB 4257 ), the local exchange carriers that lose revenues would be partially compensated through a new assessment paid by all providers of retail intrastate telecommunications services, commercial mobile providers, and interconnected Voice over Internet Protocol service providers. The bill now goes to Gov. Jennifer Granholm for her signature.
The legislation easily passed both houses of the Legislature despite opposition from local carriers, who in a statement warned the bill would make it impossible for them to expand or upgrade their networks for improved broadband and wireless Internet services.
“This legislation gives an unfair advantage to AT&T, Verizon and other large, out-of-state corporations at the expense of Michigan-based service providers,” said John Truscott, spokesperson for the Michigan Internet & Telecommunications Alliance. “It will end investment by local companies to improve broadband and wireless access in their communities.”
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