Metromedia Fiber Network Services (MFN) asked Mich. PSC to impose...
Metromedia Fiber Network Services (MFN) asked Mich. PSC to impose daily fines on City of Dearborn for failing to provide company permit within 90-day window stipulated by Mich. Telecom Act (MTA). Dearborn is 3rd city to be cited by…
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telecom providers for failing to grant or denying permit within stipulated time. Commission had found cities of Birmingham and Rochester in violation of MTA on similar counts and fined them $10,000 and $20,000, respectively, on complaint by Coast to Coast Telecommunications. MFN said it had sought permit from city March 30 as part of its plan to build 165 mile, $56 million fiber network to enable it to provide telecom services in Macomb, Oakland and Wayne counties. City made no “serious attempt” to issue permit within statutory 90 days, company said, but required it to enter into franchise agreement and pay, at minimum, percentage of gross revenues as precondition for use of its rights-of-way. Many provisions of city’s telecom ordinance and franchise agreement requirement are beyond its “proper authority, usurp PSC’s authority, violate MTA and are adverse to the public,” company said. MFN sought daily fines of $2,000 to $40,000 effective June 28 when statutory deadline for issuing permit expired. It also requested award of damages including any increase in fiber, construction and financing costs resulting from delay, lost revenue and attorney fees. In warning to cities last Dec., PSC said it would impose daily fines on local govts. if they failed to act on applications for construction permits for fiber networks within time limit set by statute.