Michigan Office of Administrative Hearings and Rules  
611 W. Ottawa Street  
Lansing, MI 48909  
Phone: 517-335-8658 Fax: 517-335-9512  
AGENCY REPORT TO THE  
JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)  
1. Agency Information  
Agency name:  
Licensing and Regulatory Affairs  
Division/Bureau/Office:  
Public Service Commission  
Name of person completing this form:  
Leah Arendt  
Phone number of person completing this form:  
517-284-8093  
E-mail of person completing this form:  
ArendtL@michigan.gov  
Name of Department Regulatory Affairs Officer reviewing this form:  
Elizabeth Arasim  
2. Rule Set Information  
MOAHR assigned rule set number:  
2021-41 LR  
Title of proposed rule set:  
Unbundled Network Element and Local Interconnection Services  
3. Purpose for the proposed rules and background:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 2  
These rules specify the minimum quality standards for provision of unbundled network elements  
(UNEs) and local interconnection services applicable to incumbent local exchange carriers (ILECs)  
interconnecting with competitive local exchange carriers (CLECs), to enable efficient competition in  
the marketplace in the provision of basic local exchange service. R 484.74 requires that the minimum  
quality standards for the provision of UNEs and local interconnection by an ILEC be either the  
standards set out in the final order in an industrywide proceeding before the Commission, or, where  
there is no such order, the standards adopted by the interconnecting parties pursuant to their  
interconnection agreement (ICA) approved by the Commission. The only current, final order in an  
industry-wide proceeding—the September 24, 2020 order in Case No. U-11830—applies to AT&T  
Michigan (the ILEC) and all CLECs interconnecting with AT&T Michigan. Thus, all other ILECs are  
subject to the alternative standard; that is, those standards adopted by the ILEC and CLEC in their  
ICA approved by the Commission.  
The rules apply to large ILECs in their offering of wholesale UNEs and interconnection. Small ILECs  
typically do not offer UNEs on a wholesale basis. The few CLECs engaged in offering wholesale  
services are excluded from these rules due to the small amount of activity that they generate and the  
costs that would be incurred to implement processes to address and monitor such rules. The rules are  
based upon existing negotiation processes between ILECs and CLECs, as provided for by 47 USC  
251 and 252, and standards established through industry-wide proceedings that occur between the  
individual ILECs and participating CLECs before the Commission.  
Creating an intricate set of rules for the provision of unbundled network elements and local  
interconnection services is unnecessary due to market forces and the effective negotiation processes  
between providers already in existence. When such processes already exist and allow for certainty,  
there is no need for additional regulatory intervention. There is presently no known reason to believe  
there will be any negative effects from adopting these rules. The Commission proposes to  
repromulgate the rules with no changes. There were already repromulgated and put into effect in  
2013, 2016, and 2019.  
4. Summary of proposed rules:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 3  
The Michigan Public Service Commission is considering the re-adoption of rules governing  
unbundled network elements and local interconnection services, located at Mich Admin Code, R  
484.71 to 484.75. The Commission will hold a public hearing to solicit comments from anyone who  
wishes to comment on the proposed re-adoption.  
These rules, previously re-promulgated and put into effect in 2013, 2016, and 2019, specify the  
minimum quality standards for provision of unbundled network elements (UNEs) and local  
interconnection services applicable to incumbent local exchange carriers (ILECs) interconnecting  
with competitive local exchange carriers (CLECs), to enable efficient competition in the marketplace  
in the provision of basic local exchange service. R 484.74 requires that the minimum quality  
standards for the provision of UNEs and local interconnection by an ILEC be either the standards set  
out in the final order in an industrywide proceeding before the Commission, or, where there is no  
such order, the standards adopted by the interconnecting parties pursuant to their interconnection  
agreement (ICA) approved by the Commission. The only current, final order in an industry-wide  
proceeding—the September 24, 2020 order in Case No. U-11830—applies to AT&T Michigan (the  
ILEC) and all CLECs interconnecting with AT&T Michigan. Thus, all other ILECs are subject to the  
alternative standard; that is, those standards adopted by the ILEC and CLEC in their ICA approved by  
the Commission.  
The rules apply to large ILECs in their offering of wholesale UNEs and interconnection. Small  
ILECs typically do not offer UNEs on a wholesale basis. The few CLECs engaged in offering  
wholesale services are excluded from these rules due to the small amount of activity that they  
generate and the costs that would be incurred to implement processes to address and monitor such  
rules. The rules are based upon existing negotiation processes between ILECs and CLECs, as  
provided for by 47 USC 251 and 252, and standards established through industry-wide proceedings  
that occur between the individual ILECs and participating CLECs before the Commission.  
Creating an intricate set of rules for the provision of unbundled network elements and local  
interconnection services is unnecessary due to market forces and the effective negotiation processes  
between providers already in existence. When such processes already exist and allow for certainty,  
there is no need for additional regulatory intervention. There is presently no known reason to believe  
there will be any negative effects from adopting these rules. The Commission proposes to re-adopt  
the rules, with some minor changes, effective April 19, 2022.  
5. List names of newspapers in which the notice of public hearing was published and  
publication dates:  
The Grand Rapids Press (Daily Edition) – 9/23/21; The Mining Journal – 9/23/21; and Oakland Press  
– 9/23/21.  
6. Date of publication of rules and notice of public hearing in Michigan Register:  
9/15/2021  
7. Date, time, and location of public hearing:  
10/5/2021 09:00 AM at The public hearing will be held virtually via Microsoft Teams. Any person  
may attend and participate in this hearing via the following web link or by dialing the number below  
at the time of the hearing. , Join on your computer or mobile app: https://bit.ly/U-21078 Or call in  
(audio only): 248-509-0316 Phone Conference ID: 409 788 013#  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 4  
8. Provide the link the agency used to post the regulatory impact statement and cost-benefit  
analysis on its website:  
https://ARS.apps.lara.state.mi.us/Transaction/RFRTransaction?TransactionID=1299  
9. List of the name and title of agency representative(s) attending public hearing:  
Commission Staff Wendy Thelen (Manager of Licensing & Competitive Issues Section within the  
Commission) and Joshua McConkie (Departmental Analyst within Licensing & Competitive Issues)  
attended the public hearing, with Assistant Attorney General Benjamin J. Holwerda appearing on  
Commission Staff’s behalf.  
10. Persons submitting comments of support:  
No comments in support were submitted during the formal comment period. (Informal comments in  
support, however, were received by Commission Staff prior to seeking renewal of the Unbundled  
Network Element and Local Interconnection Services rules – specifically from the Michigan Internet  
and Telecommunications Alliance.)  
11. Persons submitting comments of opposition:  
Michigan Bell Telephone Company d/b/a AT&T Michigan  
12. Identify any changes made to the proposed rules based on comments received during the  
public comment period:  
Name &  
Organization public hearing  
Comments made at Written  
Comments  
Agency Rationale Rule number  
for change  
& citation  
changed  
None.  
1
None.  
None.  
None.  
13.Date report completed:  
12/8/2021  
MCL 24.242 and 24.245  
;