BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
         

In the Matter of the Application and Petition of 

Metromedia Fiber Network Services, Inc.,


For Registration as a Telecommunications Company and Classification as a 
Competitive Telecommunications Company.
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DOCKET UT-980974


ORDER AUTHORIZING REGISTRATION AND GRANTING PETITION FOR COMPETITIVE 
CLASSIFICATION AND APPROVING PRICE LIST
 
  By petition filed July 23, 1998, in Docket UT-980974, Metromedia Fiber 
Network Services, Inc., seeks registration as a telecommunications company, 
classification as a competitive telecommunications company, and approval of its 
proposed price list pursuant to RCW 80.36.350 and 80.36.320.  Metromedia Fiber 
Network Services, Inc., requested extensions for additional time to complete 
its application for registration by letter to the Commission dated August 7, 
1998.

  Metromedia Fiber Network Services, Inc., proposes to register with the 
Commission as a telecommunications company to offer non-switched dedicated and 
private line, high capacity fiber optic transmission services to the public.  
In support of its petition, Metromedia Fiber Network Services, Inc., alleges 
inter alia that its services compete with other access provider’s 
telecommunication services.  Metromedia Fiber Network Services, Inc., states 
that customers have readily available, equivalent, alternatives and that there 
are no captive customers of the company’s services.  

  Metromedia Fiber Network Services, Inc., is a Delaware corporation, 
headquartered in White Plains, New York, and is wholly owned by Metromedia 
Fiber Network, Inc.  Rates, terms, and conditions set forth in the proposed 
price list are structured similarly to rates filed by other interexchange 
carriers for calls placed in the relevant market.

  Metromedia Fiber Network Services, Inc., has provided information showing 
that it meets the requirements of RCW 80.36.350.  Metromedia Fiber Network 
Services, Inc., will collect deposits or advance payments from customers in 
accordance with WAC 480-121-040.  Pursuant to statutes and rules governing 
registration applications and deposit or advance payment proposals, Metromedia 
Fiber Network Services, Inc., has proposed a satisfactory bond agreement for 
protection of those advance payments.  Initially, the bond agreement will be 
for $250,000 and will increase proportionally as the customer base increases.  
If Metromedia Fiber Network Services, Inc., ceases operations, it will provide 
the insurer and the Commission lists of outstanding account numbers and 
balances within 48 hours.

  Metromedia Fiber Network Services, Inc., shall maintain adequate levels in 
the bond agreement to assure compliance with WAC 480-121-040.  If Metromedia 
Fiber Network Services, Inc., goes out of business, it will provide refund 
information on the company’s “800" phone number for its customers.

 Docket UT-980974         Page 1 

  The company filed written testimony in support of competitive classification, 
which accompanied its petition.  In conjunction with classification, the 
company is seeking waiver of the requirements of various provisions of chapter 
80.36 RCW and chapter 480-120 WAC.  


  The company is also seeking waiver of:

 RCW 80.04.300  Budgets to be filed by companies--Supplementary budgets
 RCW 80.04.310   Commission’s control over expenditures
 RCW 80.04.320  Budget rules
 RCW 80.04.330  Effect of unauthorized expenditure--Emergencies
 RCW 80.04.360  Earnings in excess of reasonable rate--Consideration in fixing 
rates
 RCW 80.04.460  Investigation of accidents
 RCW 80.04.520  Lease of utility facilities
 RCW 80.36.100  Tariff schedules to be filed and open to public
 RCW 80.36.110  Tariff changes--Statutory notice--Exception
 Chapter 80.08 RCW Securities (except RCW 80.08.140)
 Chapter 80.12 RCW Transfers of Property
 Chapter 80.16 RCW Affiliated interests
 Chapter 480-80 WAC Tariffs
 Chapter 480-140 WAC Budgets
 Chapter 480-143 WAC Transfers of Property
 Chapter 480-146 WAC Securities and affiliated interests
 WAC 480-120-026  Tariffs 
 WAC 480-120-031  Accounting
 WAC 480-120-032  Accounting-Political information and political education 
activities
 WAC 480-120-036  Finance--Securities, affiliated interest, transfer of property
 WAC 480-120-046  Services offered
 WAC 480-120-131  Reports of accidents
                


  Rules invoked include those within chapters 480-09 and 480-120 WAC, 
specifically WAC 480-09-520 and WAC 480-120-022, WAC 480-120-023, 
WAC 480-120-024, and WAC 480-120-025.  Statutes invoked include RCW 80.36.145, 
80.36.320, and RCW 80.36.350.  The ultimate issues are whether Metromedia Fiber 
Network Services, Inc., should be registered as a telecommunications company, 
classified as a competitive telecommunications company, its proposed price list 
should be approved, and the extent to which it should be relieved of regulatory 
requirements to which it would otherwise be subject.
   


FINDINGS OF FACT

  1. Metromedia Fiber Network Services, Inc., filed an application for 
registration as a telecommunications company and a petition for classification 
as a competitive telecommunications company pursuant to the provisions of RCW 
80.36.350 and 80.36.320,  to provide non-switched dedicated and private line, 
high capacity fiber optic transmission services to the public.

  2. As to form, the application and petition filed herein, meets the 
requirements of RCW 80.36.350 and 80.36.320, and the Commission’s rules and 
regulations.

  3. The registration of Metromedia Fiber Network Services, Inc., as a 
telecommunications company is not inconsistent with the public interest.

  4. In this proceeding, the Commission in no way endorses the financial 
viability of applicant nor the investment quality of any securities it may 
issue.

  5. Alternative providers of service to that of Metromedia Fiber Network 
Services, Inc., include, but are not limited to, AT&T Communications, Inc., U S 
WEST Communications, Inc., MCI Communications Corporation, and Sprint 
Communications Company.  All services are fully available from alternative 
providers in the relevant market. 

  6. The relevant market is the state of Washington.

  7. Metromedia Fiber Network Services, Inc., has no captive customer base.

  8. The services offered are subject to effective competition.

  9. Metromedia Fiber Network Services, Inc., should be permitted to provide 
services under its proposed price list.

  10. Metromedia Fiber Network Services, Inc., requested waivers of certain 
laws and rules relating to telecommunications services.  The laws and rules for 
which waivers should be granted are listed on Appendix A, incorporated by this 
reference and made a part of this Order.


CONCLUSIONS OF LAW

  1. The Washington Utilities and Transportation Commission has jurisdiction 
over the subject matter of this classification proceeding and the parties.

  2. Metromedia Fiber Network Services, Inc., should be registered as a 
telecommunications company pursuant to RCW 80.36.350 and classified as a 
competi- tive telecommunications company pursuant to RCW 80.36.320(1).


  3. Metromedia Fiber Network Services, Inc., should be permitted to provide 
services under price lists pursuant to RCW 80.36.320 (2).  These services will 
not include alternate operator services as defined in WAC 480-120-141.

  4. Metromedia Fiber Network Services, Inc., should be granted waiver of the 
laws and rules listed in Appendix A; waiver of laws and rules requested that 
are not included in Appendix A should be denied.


O R D E R

  THE COMMISSION ORDERS:

  1. After the effective date of this Order and subject to any conditions 
imposed, the application of Metromedia Fiber Network Services, Inc., requesting 
an Order authorizing registration as a telecommunications company to provide 
service to the public in this state is approved.

  2. The petition of Metromedia Fiber Network Services, Inc., for 
classification as a competitive telecommunications company is approved; waiver 
of the laws and rules listed in the attached Appendix A is granted.

  3. The proposed price list of Metromedia Fiber Network Services, Inc., for 
rates and services, is approved.

  4. Registration of Metromedia Fiber Network Services, Inc., as a 
telecommunications company shall not be construed as an endorsement of 
financial viability nor of the investment quality of any securities it may 
issue.

  5. As a telecommunications company providing service to the public in this 
state, Metromedia Fiber Network Services, Inc., is subject to the jurisdiction 
of this Commission under the provisions of Title 80 RCW and all rules and 
regulations adopted by the Commission. 

  6. Metromedia Fiber Network Services, Inc., is authorized to offer rates and 
services pursuant to price list in the format prescribed by the Commission; the 
price list approved in this proceeding, and subsequent changes to that price 
list, become effective only after ten days notice to the Commission and to 
customers.  In the event of a price list reduction or of a change in terms and 
conditions which do not have rate impact, personal notice to customers will not 
be required.  Although the Commis- sion does not have authority to waive the 
statutory notice requirement, Metromedia Fiber Network Services, Inc., will 
have the option to publish notice of price reductions or changes in terms and 
conditions of service which do not have rate impact by a display advertisement 
in such newspaper(s) as are geographically situated to be circulated over the 
company's service area.



  

  7. The services offered by Metromedia Fiber Network Services, Inc., are not 
to include alternate operator services as defined in WAC 480-120-141.

  8. Metromedia Fiber Network Services, Inc., filed with the Commis-sion a 
satisfactory bond agreement in the amount of $250,000.  As part of the bond 
agreement and in the event the company ceases operations, Metromedia Fiber 
Network Services, Inc., will within 48 hours provide to the insurer and the 
Commission lists of outstanding account numbers and balances.

  9. In the event the company ceases operations, Metromedia Fiber Network 
Services, Inc., will provide refund information on the company’s “800" phone 
number for its customers for a minimum of six months.

  10. The Commission retains jurisdiction over the subject matter and the 
parties to effectuate the terms of this Order.

  11. Metromedia Fiber Network Services, Inc., shall maintain adequate levels 
in the bond agreement to assure compliance with WAC 480-121-040 for the 
protection of customer deposits or advance payments.  




  DATED at Olympia, Washington, and effective this          th day of September 
1998.


WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



       CAROLE J. WASHBURN, Secretary 


DOCKET UT-980974

APPENDIX A

RCW 80.04.300  Budgets to be filed by companies--Supplementary budgets
RCW 80.04.310   Commission’s control over expenditures
RCW 80.04.320  Budget rules
RCW 80.04.330  Effect of unauthorized expenditure--Emergencies
RCW 80.04.360  Earnings in excess of reasonable rate--Consideration in fixing 
rates
RCW 80.04.460  Investigation of accidents
RCW 80.04.520  Lease of utility facilities
RCW 80.36.100  Tariff schedules to be filed and open to public
RCW 80.36.110  Tariff changes--Statutory notice--Exception

Chapter 80.08 RCW Securities (except RCW 80.08.140, State not obligated)
Chapter 80.12 RCW Transfers of Property
Chapter 80.16 RCW Affiliated interests

Chapter 480-80 WAC Tariffs
Chapter 480-140 WAC Budgets
Chapter 480-143 WAC Transfers of Property
Chapter 480-146 WAC Securities and affiliated interests

WAC 480-120-026  Tariffs 
WAC 480-120-031  Accounting
WAC 480-120-032  Accounting-Political information and political education 
activities
WAC 480-120-036  Finance--Securities, affiliated interest, transfer of property
WAC 480-120-046  Services offered
WAC 480-120-131  Reports of accidents