Business Services Industry
Ameritech learns cost of bad service to rivals.(Brief Article)
Crain's Detroit Business, May, 2001 by Lane, Amy
LANSING - If Ameritech Michigan discriminates against competitors in providing services and access to its network, it could pay $337 million annually in damages. An order issued last month by the Michigan Public Service Commission sets up a plan for Ameritech to compensate competitors and the state if it fails to provide competitors the services and infrastructure that are equal in quality to that which it provides itself.
The plan is integral to Ameritech's bid to start providing long-distance service in Michigan. The plan initially caps the annual amount Ameritech might have to pay at 36 percent of the company's net return - about $337 million, based on recent earnings. Ameritech's net return is its revenue minus expenses. If Ameritech reaches the cap,...
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