LANSING – Fewer Michigan residents use wireline telephones, and of those who do, more are opting for competitors to the incumbent providers, according to a report released Tuesday from the Public Service Commission.
The annual telecommunications competition report showed wireline service had declined another 7 percent between 2009 and 2010 to about 3.63 million lines. The number of phone lines in the state has declined steadily since 2002.
The report showed competitors controlled 28.5 percent of the phone market in 2010, up from 24.2 percent in 2009.
AT&T, the state’s largest provider, controlled 57.1 percent of the market, down 3.7 percentage points from the year prior. Frontier, the second largest incumbent provider, had 10.5 percent.
“Telecommunications competition in Michigan continues to thrive, reaching the highest level ever recorded,” PSC Chair Orjiakor Isiogu said. “And a stable number of competitive providers have continued to invest in providing service over their own facilities – good news for Michigan’s economy.”
But the report showed a slight decline in the percentage of lines competitors were providing on their own networks: 32.3 percent compared to 34.5 percent in 2009.
Competitors are also expanding their service through voice over Internet protocol, which represented 19.2 percent of their total service.
The commission noted that, while it does not oversee wireless service, that is the growing portion of the telecommunications market.
“In 2010, Michigan’s competitive wireline market share increased to 28.5 percent which continues to keep Michigan in the top ten states regarding competition levels,” the report said. “This also keeps Michigan well ahead of its neighboring states of Illinois, Indiana, Ohio and Wisconsin.”
The report was based on surveys from the 40 incumbent providers and 132 of the 190 licensed competitors. Of those responding, 92 of the competitors said they were actually providing service.
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