Kitrina Spencer is pretty satisfied with her Ameritech local phone service, but if something cheaper comes along she would have no qualms about switching service.
The philosophy junior, as well as other students and residents, might be given the choice of staying with Ameritech, Michigan’s major local phone service provider, or switching to another provider.
AT&T Corp., headquartered in Basking Ridge, N.J., is planning on entering Michigan’s local phone service market by the end of the year.
“We want to be able to provide customers with total service,” said Mark Siegel, an AT&T spokesman. “We want them to benefit with a real choice.”
Spencer said her phone bill is usually about $30 a month, but she could always go for something less expensive.
“I’m always for ‘the cheaper, the better,’” she said. “If there is competition it drives down prices.”
Siegel said the Telecommunications Act of 1996 made it possible for AT&T to enter the local telephone market in Michigan.
The goal of the law, which was enacted by the Federal Communications Commission, is to let any company enter the communication business, therefore increasing competition.
“The Telecommunications Act of 1996 unleashed real choice for 9.5 out of 10 customers still served by monopolies,” Siegel said.
Mike Barnhart, director of public affairs for Ameritech, said the company looks forward to competing with AT&T in the local phone service market as well as long distance service.
Barnhart said AT&T, which already offers long-distance services to Michiganians, is part of the phenomena of growing local telephone service.
“More competition is always a good thing for consumers,” he said. “It will save the customers money and give them more choices.”
Barnhart said the number of lines that competing companies operate are growing by 23,000 a month.
“AT&T is part of a tremendous growth in Michigan for local phone competition,” he said. “Even before this announcement, a report was issued that said local telephone competition increased by 66 percent.”
Siegel said AT&T would not be able to enter the market until it is confident Ameritech has the ability to quickly and easily switch customers to AT&T’s service.
“We are going to test them and see,” he said. “We must be shown those systems work well before we enter the market.”
Barnhart said Ameritech had the technology to quickly and easily switch customers from one local service provider to another.
“Last year alone we processed nearly 300,000 orders for competing telephone companies,” he said. “Ameritech is successful in working with companies like AT&T and others in switching customers.”
But Barnhart said Ameritech is not too worried about competition from AT&T.
“We work hard to serve all our customers, whether those customers are local, residential or if they are business or wholesale,” he said.
Shannon Murphy can be reached at murphy78@msu.edu.
