MICHIGAN COURT DECIDES AGAINST ANTICOMPETITIVE AMERITECH PROGRAM

Background:

A Michigan circuit court sided with MCI WorldCom today by ruling that
Ameritech's "PIC Protection Program" violates a Public
Service Commission (PSC) rule by refusing to recognize orders from
competitors that are confirmed using Third Party Verification. To
protect against slamming -- an unauthorized change of a customer's
phone service provider -- MCI WorldCom uses an independent third party
verifier to confirm each and every order for new service placed in
Michigan. The Public Service Commission ruled May 11, 1998, that such
verification is sufficient to override an Ameritech "PIC
Freeze." PIC freezes prevent customers from switching carriers
without direct authorization to their local phone company. Despite that
PSC order, Ameritech in December began offering its local toll
customers a new "PIC Protection Program" that refuses to
honor orders confirmed by a third party verifier. Since December 2, in
direct violation of the PSC's order, Ameritech has refused to
process more than 2,600 customer change requests from MCI WorldCom,
even though each of those customers had confirmed their desire to
change carriers to an independent third party.

(Please attribute the following statement to Joan Campion, MCI
WorldCom regional director for public policy.)

LANSING, MI, January 29, 1999 --

"Today's Ingham County Circuit Court decision sends a clear
signal that Ameritech's anti-competitive attempts to maintain a
stranglehold over its customers in Michigan will not be tolerated.

"The fact that Ameritech violated a clear PSC order by refusing
to process fully verified MCI WorldCom customer orders begs the
question: Who is Ameritech really trying to protect -- customers or its
own bottom line.

"MCI WorldCom agrees -- and insists -- that customers should be
protected against slamming. Our use of a third-party verification
system to confirm each and every order in Michigan not only protects
customers, but prevents Ameritech from engaging in self-serving,
anti-competitive behavior of this kind."

Related Articles

Putting our employees' health and wellness first
05/09/2016
Verizon offers 43 on-site health & wellness centers, and a large staff of a fitness and diet professionals.
Consensus: More wireless phones should work with hearing aids
11/19/2015
Today’s FCC action on hearing-aid-compatible devices is the result of a successful collaborative effort.