IntraLATA toll skirmish in Michigan

The Michigan Competitive Telecommunications Providers Association last week accused Ameritech of secretly and aggressively attempting to reduce competition in that state. The organization, which includes AT&T and MCI, based its charges on an Ameritech internal memo that it claimed to have obtained through staff contacts.

The memo indicated that the Bell company intended to significantly reduce its 2-PIC program, which invites new customers to use an alternative carrier for intraLATA toll calls. Three days after the memo was released to the public, an Ameritech spokeswoman said the company had decided not to change the program.

In June 1996, the Michigan Public Service Commission ordered Ameritech to offer a 2-PIC style program to a "majority" of Michigan customers. Last month, a Michigan Court of Appeals ruled that Ameritech had to offer this option in only 10% of its exchanges.

The memo, addressed to the Ameritech Michigan sales team, outlines an intention to reduce the availability of the 2-PIC option from 70% of its exchanges to the required 10% by June 24. The memo stipulates that as a result, "new customers or existing customers establishing new service will not be able to choose a carrier other than Ameritech for their 2-PIC."

Under the 2-PIC plan, customers can choose interexchange carriers such as AT&T and MCI for intraLATA toll calls, an MCTPA spokesman said. Approximately 40% of eligible Michigan customers have taken advantage of the option to choose another carrier, the MCTPA spokesman said.

Without the ability to permanently designate an alternative carrier, customers wishing to use an Ameritech competitor for intraLATA toll calling would have to dial up to seven extra numbers-something that research shows customers are not likely to do, the MCTPA spokesman said.