Legislature Hangs Up on Local Broadband, Wireless Investment With New Telecom Tax

Projects throughout Michigan jeopardized by bill favoring AT&T over local companies

LANSING, Mich. — Michigan Internet & Telecommunications Alliance is urging Gov. Jennifer Granholm to veto a measure approved by the Legislature today that creates a new tax on telecommunication providers in Michigan.

The legislation, House Bill 4257, creates a new tax on in-state telecommunication providers. It also forces local companies to artificially lower the rates they charge large, out-of-state providers, such as Dallas-based AT&T Inc., to use their local networks to complete telephone calls.

The Senate passed the measure Wednesday despite strong opposition from local providers, who warned lawmakers it would make it economically infeasible for them to expand or upgrade their networks for improved broadband and wireless Internet services in communities throughout the state.

“This legislation gives an unfair advantage to AT&T and other large, out-of-state corporations at the expense of Michigan-based service providers,” said John Truscott, spokesman for the Michigan Internet & Telecommunications Alliance. “It will slow investment by local companies to improve broadband and wireless access in their communities, and it is contrary to the nationwide push to rapidly expand high-speed broadband coverage.”

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