LANSING, May 22.  The Michigan Public Service Commission today
granted Z-Tel Communications, Inc., a license to provide basic local telephone
service in Michigan.   Z-Tel  joins more than 100 companies that have been
granted a license to provide basic local telephone service in Michigan.  

     The Commission approved the license   because it determined that Z-Tel 
possesses sufficient technical, financial and managerial resources and abilities to
provide basic local telephone service within the geographic area of the license. 
The Commission concluded that competition for telephone service can be
advantageous to Michigan residents and, by granting this request for a license,
opportunities for competition may expand.  The Commission conditioned the
license on compliance with the Commission's anti-slamming procedures, and
failure to comply may result in revocation of the license or other penalties.  The
Commission also conditioned the license upon the company providing service to
customers within a reasonable time, indicating that failure to do so may result in
revocation of the license.

     Z-Tel was granted a license to provide basic local telephone service for
all telephone exchanges currently served by Ameritech Michigan.  Telephone
exchanges and zones are geographic boundaries that define customer's local
calling area.   Z-Tel applied for a license on February 28, 2000.

     Z-Tel will be able to begin to provide basic local telephone service once
it  has finalized interconnection arrangements with other telephone service
providers and has filed approved tariffs with the Commission.  Interconnection
arrangements allow its customers to place calls to, and receive them from,
customers of other local telephone service providers.

     Z-Tel is headquartered in Tampa, Florida.

     The MPSC is an agency within the Department of Consumer and Industry
Services.

Case No. U-12335
May 22, 2000
(Z-Tel  is granted a license to provide basic local telephone service)