LANSING, August 16.  The Michigan Public Service Commission
today fined the City of Dearborn for violations of the Michigan
Telecommunications Act, finding that the City's actions involving a permit
application filed by Metromedia Fiber Network Services, Inc. were not a good
faith implementation of the provisions of the MTA.  The Commission
concluded that Dearborn violated the MTA because, among other things, it: 1)
failed to issue a permit within 90 days that authorized MFN to use the public
rights-of-way; and 2) insisted on a franchise agreement that violates the MTA. 
Today's order assesses a fine of $2,000 per day, beginning today, for the first
ten days, rising to $4,000 per day thereafter, through the date that the City
takes definitive action with MFN, in full compliance with the MTA and the
Commission order.  The Commission also required the City to pay attorney
fees and costs incurred by MFN.

     On March 30, 2000, MFN, a telecommunications service provider,
filed an application with the City of Dearborn as part of a project to build a
156-mile fiber optic network in southeast Michigan to provide technologically
advanced, high-bandwidth, fiber optic telecommunications services and
internet connectivity.

     MFN filed a complaint with the Commission on January 26, 2001,
alleging that the City failed to issue a full and complete permit within 90 days
which authorized MFN to use the public rights-of-way, and attempted to
impose unlawful conditions and discriminatory fees.

     MPSC staff, MFN, Ameritech Michigan, the Telecommunications
Association of Michigan, and the Competitive Local Exchange Carriers
Association of Michigan participated in the proceeding.

     "The Commission concludes that a fine is required," said Chairman
Laura Chappelle.  "The public interest demands that municipalities not be
permitted to use unlawful or insubstantial reasons to stop the deployment of
advanced, or even basic, telecommunications services in the state."

     MFN, headquartered in East Rutherford, New Jersey, is a
telecommunications service provider, and is licensed to provide basic local
exchange services in Ameritech Michigan's, Verizon North Inc.'s, and
Verizon North Systems' telephone exchanges.

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


Case No. U-12797
August 16, 2001
(MPSC fines the City of Dearborn for violations of the MTA)