MITA Newsletter – 2009 Issue 1

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Serving Michigan homes and businesses for over 15 years

Inside this issue:
House Committe Holds Hearing on HB 4257 Myth vs. Fact MPSC Realeases 2009 "Telecom Competition Report" to the Legislature CLECs go where no one else has gone before FCC Announces "Comprehensive Reform" on Intercarrier Comp	Michigan CLECs Foster Innovation CMC Takes on Verizon TelNet Worldwide Locates Call Center in Marquette This Month’s Member Profile About MITA

Inside this issue:

House Committe Holds Hearing on HB 4257

Myth vs. Fact

MPSC Realeases 2009 "Telecom Competition Report" to the Legislature

CLECs go where no one else has gone before

FCC Announces "Comprehensive Reform" on Intercarrier Comp

Michigan CLECs Foster Innovation

CMC Takes on Verizon

TelNet Worldwide Locates Call Center in Marquette

This Month’s Member Profile

About MITA

House Committee holds Hearing on HB 4257 TOP
The House Energy & Technology Committee held a hearing on HB 4257 on July 14th. Over two hours of testimony was presented that both favored and opposed a compromise version of the original bill. Michigan CLECs oppose HB 4257 because: It significantly reduces much needed revenues for continued investment in Michigan telecom infrastructure. Such a significant revenue reduction could cause CLECs to raise customer rates to make up for the loss. This would have theeffect of squeezing CLECs from effectively competing with the big telecos. If CLECs go out of business, high tech jobs will be lost and Michigan will become a less desirable place to do business. Telecom finances are very complex and regulated by both state and federal rules. Complex matters such as these are better left to the experts at the MPSC and the FCC to avoid one-sided results. On August 25, 2009, the Michigan House of Representatives, Energy & Technology Committee held another hearing in the ongoing debate over access reform in Michigan. MITA members came prepared to testify in front of the large panel of committee members. Over 20 MITA members attended the early morning House Technology & Energy committee meeting on July 14th to express their opposition to HB 4257.	An additional hearing was held on September 1st and included testimony from Verizon, Climax Telephone, Michigan Citizens Council, and Joe Mattausch of TC3 Telecom. The committee is now meeting in a workgroup format in hopes of reaching a compromise.

House Committee holds Hearing on HB 4257

TOP

The House Energy & Technology Committee held a hearing on HB 4257 on July 14th. Over two hours of testimony was presented that both favored and opposed a compromise version of the original bill.

Michigan CLECs oppose HB 4257 because:

It significantly reduces much needed revenues for continued investment in Michigan telecom infrastructure.
Such a significant revenue reduction could cause CLECs to raise customer rates to make up for the loss. This would have theeffect of squeezing CLECs from effectively competing with the big telecos.
If CLECs go out of business, high tech jobs will be lost and Michigan will become a less desirable place to do business.
Telecom finances are very complex and regulated by both state and federal rules. Complex matters such as these are better left to the experts at the MPSC and the FCC to avoid one-sided results. On August 25, 2009, the Michigan House of Representatives, Energy & Technology Committee held another hearing in the ongoing debate over access reform in Michigan. MITA members came prepared to testify in front of the large panel of committee members.

Over 20 MITA members attended the early morning House Technology & Energy committee meeting on July 14th to express their opposition to HB 4257.

An additional hearing was held on September 1st and included testimony from Verizon, Climax Telephone, Michigan Citizens Council, and Joe Mattausch of TC3 Telecom. The committee is now meeting in a workgroup format in hopes of reaching a compromise.

Myth vs. Fact TOP
MYTH: Michigan’s telecom regulations need to be changed in order to make Michigan a more attractive place to do business.	MYTH: Access Reform will make Michigan a leader in telecom policy.	MYTH: Lowering intrastate access charges will result in lower long distance rates for Michigan’s residents and businesses.
FACT: HB 4257 would reduce telecom competition and make Michigan a more expensive place to do business because CLECs’ revenues would be significantly reduced resulting in fewer competitors.	FACT: Lowering the cost that big telecom giants pay to Michigan based telecom companies will only take money out of the pockets of Michigan companies and transfer it to Texas banks.	FACT: Competition is what lowers rates. Unlimited local and long distance calling packages are commonplace and set by market forces not based on costs.

Myth vs. Fact

TOP

MYTH:

Michigan’s telecom regulations need to be changed in order to make Michigan a more attractive place to do business.

MYTH:

Access Reform will make Michigan a leader in telecom policy.

MYTH:

Lowering intrastate access charges will result in lower long distance rates for Michigan’s residents and businesses.

FACT:

HB 4257 would reduce telecom competition and make Michigan a more expensive place to do business because CLECs’ revenues would be significantly reduced resulting in
fewer competitors.

FACT:

Lowering the cost that big telecom giants pay to Michigan based telecom companies will only take money out of the pockets of Michigan companies and transfer it to Texas banks.

FACT:

Competition is what lowers rates. Unlimited local and long distance calling packages are commonplace and set by market forces not based on costs.

MPSC Releases 2009 "Telecom Competition Report" to the Legislature TOP
On June 2, 2009, the Michigan Public Service Commission issued its annual report to the legislature on the status of telecommunications competition in Michigan. The 29 page report observed that in March of 2008, the Michigan legislature eliminated the ‘sunset’ provision of the Michigan Telecommunications Act	If it isn’t broke, don’t fix it!
This, the Commission said, "is an indication that the Governor, Legislature, providers and others are satisfied with the MTA provisions and Commission policies that are currently in place related to the development and oversight of Michigan’s competitive market."

MPSC Releases 2009 "Telecom Competition Report" to the Legislature

TOP

On June 2, 2009, the Michigan Public Service Commission issued its annual report to the legislature on the status of telecommunications competition in Michigan.

The 29 page report observed that in March of 2008, the Michigan legislature eliminated the ‘sunset’ provision of the Michigan Telecommunications Act

If it isn’t broke,

don’t fix it!

This, the Commission said, "is an indication that the Governor, Legislature, providers and others are satisfied with the MTA provisions and Commission policies that are currently in place related to the development and oversight of Michigan’s competitive market."

CLECs go where no one else has gone before TOP
Many of Michigan’s CLECs serve rural areas of the state where no one else has offered service. These CLECs have taken risk capital and invested it into fiber optics, telecom equipment, advertising and labor. And CLECs do this without any government subsidies. Unlike some of their rural counterparts that receive millions of dollars of federal Universal Service Fund dollars, CLECs typically only have private equity markets and their own personal dollars to invest. Some CLECs estimate over 40% of their revenues are derived from Access charges. Substantially reducing these revenues would severely impact these companies which could result in loan defaults and make future financing more difficult.
West Branch, Roscommon, Rose City and Mio are all rural communities served by M-33 Access.

CLECs go where no one else has gone before

TOP

Many of Michigan’s CLECs serve rural areas of the state where no one else has offered service. These CLECs have taken risk capital and invested it into fiber optics, telecom equipment, advertising and labor.

And CLECs do this without any government subsidies. Unlike some of their rural counterparts that receive millions of dollars of federal Universal Service Fund dollars, CLECs typically only have private equity markets and their own personal dollars to invest. Some CLECs estimate over 40% of their revenues are derived from Access charges. Substantially reducing these revenues would severely impact these companies which could result in loan defaults and make future financing more difficult.

West Branch, Roscommon, Rose City and Mio are all rural communities served by M-33 Access.

"M-33 Access is a fast-growing, Michigan based company that is revolutionizing how broadband can be delivered to users in an effective cost-efficient manner. I am thrilled with the entrepreneurial spirit behind this company."

- Governor Jennifer Granholm

FCC Announces "Comprehensive Reform" on Intercarrier Comp TOP
On June 24, 2009, the FCC issued a statement on its website that it was going to reevaluate intercarrier compensation. Intercarrier compensation deals with the amounts of money that telecom companies are required to pay each other to interconnect and	have access to each other’s networks. It is an extremely complex financial arrangement that is carefully balanced between	state and federal jurisdictions. Thousands of regulatory proceedings and court cases have defined the current arrangements. In Michigan alone, the largest telecom company has been involved in over 100 cases at the Michigan Public Service commission since 2005.

Michigan CLECs Foster Innovation TOP
Kevin Schoen, President and founder of ACD.net headquartered in Lansing, serves over 20,000 customers statewide. Kevin is known for his technological innovation and entrepreneurship. In 2007, he sprang to action assisting the Lansing Police Department with the installation of security cameras in high crime areas using his patented approach to wireless technology.	Kevin Schoen, Founder & President of ACD.net discusses state-of-the-art broadband technology for his customers in Michigan at his office in Lansing.

Michigan CLECs Foster Innovation

TOP

Kevin Schoen, President and founder of ACD.net headquartered in Lansing, serves over 20,000 customers statewide. Kevin is known for his technological innovation and entrepreneurship. In 2007, he sprang to action assisting the Lansing Police Department with the installation of security cameras in high crime areas using his patented approach to wireless technology.

Kevin Schoen, Founder & President of ACD.net discusses state-of-the-art broadband technology for his customers in Michigan at his office in Lansing.

Telecom startups often times offer the most technological breakthroughs. "That’s where the greatest innovation is."

- Julius Genachowski, FCC Chairman, Wall Street Journal, July 20, 2009

CMC takes on Verizon TOP
All too often CLECs are faced with expensive litigation to collect what they are owed from the telecom giants for access charges and other items. These behemoths have more lawyers than many CLECs have employees. It’s simply not a level playing field by any means. CMC decided to do something about it. On April 19, 2009 they filed a complaint against Verizon for failure to pay intrastate access charges. The complaint resulted in the two companies reaching a settlement. But it shouldn’t require a lawsuit every time there is a past due bill. Our hats go off to CMC for this demonstration of chutzpah.

CMC takes on Verizon

TOP

All too often CLECs are faced with expensive litigation to collect what they are owed from the telecom giants for access charges and other items. These behemoths have more lawyers than many CLECs have employees. It’s simply not a level playing field by any means.

CMC decided to do something about it. On April 19, 2009 they filed a complaint against Verizon for failure to pay intrastate access charges. The complaint resulted in the two companies reaching a settlement. But it shouldn’t require a lawsuit every time there is a past due bill. Our hats go off to CMC for this demonstration of chutzpah.

TelNet Worldwide Locates Call Center in Marquette! TOP
Unlike many of the big telecom companies that outsource their call centers overseas, Michigan based TelNet Worldwide has its call center right in the heart of the U.P. From humble beginnings, TelNet’s "Superior Connect" Contact Center employs over 50 people right in downtown Marquette. The Contact Center handles complex support for telecom and energy services for Michigan and beyond. Providing high-tech jobs to Michigan’s U.P. is evidence of TelNet’s commitment to Michigan. " Above all, it’s about taking care of our customers. We are committed to ensuring that Michigan businesses have access to high quality, affordable telecommunications options," company founder and President Mark Iannuzzi said.	Unlike many of the big telecom companies that outsource their call centers overseas, TelNet Worldwide employs over 50 people at its call center right in downtown Marquette.

TelNet Worldwide Locates Call Center in Marquette!

TOP

Unlike many of the big telecom companies that outsource their call centers overseas, Michigan based TelNet Worldwide has its call center right in the heart of the U.P. From humble beginnings, TelNet’s "Superior Connect" Contact Center employs over 50 people right in downtown Marquette. The Contact Center handles complex support for telecom and energy services for Michigan and beyond. Providing high-tech jobs to Michigan’s U.P. is evidence of TelNet’s commitment to Michigan. " Above all, it’s about taking care of our customers. We are committed to ensuring that Michigan businesses have access to high quality, affordable telecommunications options," company founder and President Mark Iannuzzi said.

Unlike many of the big telecom companies that outsource their call centers overseas, TelNet Worldwide employs over 50 people at its call center right in downtown Marquette.

This Month’s Member Profile TOP
This month’s member profile is a leader in innovation and service. Iserv is Michigan’s largest independent owned and operated Internet Service Provider. Since its beginnings in 1995, Iserv’s innovation has led to the establishment of a world-class Data Center that is one of the leading facilities of its kind in North America offering a variety of managed data services, hosting, disaster recovery and comprehensive Digital Voice Telephony.	Iserv’s corporate headquarters in Grand Rapids greets visitors with a high-tech environment that serves thousands of customers and provides high-tech skilled jobs to the Grand Rapids workforce.

This Month’s Member Profile

TOP

This month’s member profile is a leader in innovation and service. Iserv is Michigan’s largest independent owned and operated Internet Service Provider. Since its beginnings in 1995, Iserv’s innovation has led to the establishment of a world-class Data Center that is one of the leading facilities of its kind in North America offering a variety of managed data services, hosting, disaster recovery and comprehensive Digital Voice Telephony.

Iserv’s corporate headquarters in Grand Rapids greets visitors with a high-tech environment that serves thousands of customers and provides high-tech skilled jobs to the Grand Rapids workforce.

MITA -Providing Competitive Telecom Service to Michigan Residents and Businesses TOP
Michigan Internet & Telecommunications Alliance 915 N. Washington Ave Lansing, MI 48906	The Michigan Internet & Telecommunications Alliance was formed as an outgrowth of the Michigan Communications Carriers Association along with Internet Service Providers, Web hosting facilities, software programmers and engineers. Its purpose is to inform public policy makers about the importance of creating a competitive telecommunications environment in Michigan.
Phone: 517-913-5109 E-mail: info@mita1.net

June 18th, 2010

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MITA Newsletter – 2009 Issue 1

Serving Michigan homes and businesses for over 15 years

About Us

MITA Industry News

Senate Testimony, March 15, 2011

MITA Supports HB5342

MITA Supports SB 499

MITA Supports SB335 & SB336