$//MO&O, Metropolitan Fiber Systems, Intl. Ext. of Lines, DA 95-125//$

$/63.01 Contents of Applications/$
$/300.214 Extension of Lines/$


///newjob///
$///DA 94-125,2/2/95///$

                                                                                                                     
                                                                                                     DA 95-125
                               Before the
                     FEDERAL COMMUNICATIONS COMMISSION
                          Washington, D.C. 20554

In the Matter of                   )  
                                             )
Metropolitan Fiber Systems of           )    File No.  I-T-C-93-174   
New York, Inc. d/b/a as FiberNet        )
                              )                             
Application for authority, pursuant to  )         
Section 214 of the Communications Act   ) 
for facility or other authorization to  )
provide International Service Between   )
the United States and Canada       )

                      MEMORANDUM, OPINION AND ORDER 

     Adopted:  January 20, 1995              Released: February 6, 1995

By the Chief, Telecommunications Division:

                    I. Introduction 

     1.   Metropolitan Fiber Systems of New York, Inc. ("MFSNY"), pursuant to
Section 214 of the Communications Act of 1934, as amended, submitted the above-captioned
application requesting authority to construct a high capacity fiber optic line between the U.S.
- Canadian border and a switching center in Buffalo, New York.  MFSNY will use the fiber
optic line to provide international voice, facsimile, data, and private line service between the
United States and Canada.  MFSNY intends to provide capacity to U.S. and Canadian
carriers authorized to carry international switched and private line traffic, as well as provide
private line service directly to end users located in the United States and Canada.  MFSNY
will provide DS-1 and DS-3 capacity for private lines.  Each DS-1 channel will be capable of
carrying 24 voice grade equivalent channels and each DS-3 channel will be capable of
carrying 28 equivalent DS-1 channels.  Capacity will not exceed 12 DS-3 circuits. 
MFSNY's application went on public notice on May 5, 1993, and on June 4, 1993, AT&T
filed a Petition to Deny the application. 

                    II. DISCUSSION
          
     2.   The Applicant asserts that granting the application will serve the public interest
by expanding the options available to authorized carriers and private line customers located
in both the United States and Canada.  It will also provide competition, lower prices and
provide greater consumer choice in the market for international facilities-based services. 
Furthermore, according to the applicant, granting the application will enable authorized
interexchange carriers in the United States and Canada to obtain the most technologically
advanced facilities to meet their transport needs at prices equal to or below those of other
carriers.  Additionally, the Applicant asserts that MFSNY should be classified as a non-
dominant carrier subject to streamlined regulation.    

     3.   AT&T argues against granting MFSNY's application.  AT&T's argument,
however, is based on the assumption that MFSNY has applied to be a reseller rather than a
facilities-based carrier.  The record reflects that MFSNY requests authority to  construct a
high capacity fiber optic line to provide U.S.-Canada services on a facilities basis. 
Consequently, AT&T's argument is rendered moot. 

     4.   Upon consideration of MFSNY's application, we certify that the present and
future public convenience and necessity require the construction of a high capacity fiber optic
line, which will be used to provide DS-1 and DS-3 private lines between the United States
and Canada.  

                    IV. Ordering Clauses 
    
     5.   Accordingly, IT IS ORDERED, pursuant to Section 214 of the
Communications Act of 1934, as amended, 47 U.S.C.  214, that the application of
MFSNY, Inc., File No. ITC-93-174, IS GRANTED and MFSNY is authorized to: 

          a. construct a high capacity (12 DS-3 capacity) fiber optic line between the
          United States and Canada; 

          b. provide international switched voice, facsimile, data, and private line
          service; and

          c. use the facility to transport other carriers' traffic, including international
          switched voice and private line traffic, and individual customer private line
          traffic between the United States and Canada.  

     6.   IT IS FURTHER ORDERED that AT&T's Petition to Deny is DENIED. 

     7.   IT IS FURTHER ORDERED, pursuant to Section 203 of the Communications
Act, as amended, 47 U.S.C.  203, and Part 61 of the Commission's Rules, 47 C.F.R. Part
61, that MFSNY must file tariffs for the services authorized in this order.    
     
     8.   IT IS FURTHER ORDERED that MFSNY must file annual reports of
overseas telecommunications traffic as required by Section 43.61 of the Commission's Rules,
47 C.F.R.  43.61. 

     9.   This order is issued under Section 0.261 of the Commission's Rules, 47
C.F.R.  0.261, and is effective upon adoption.  Petitions for reconsideration under Section
1.106 or applications for review under Section 1.115 of the Commission's Rules, 47 C.F.R.
 1.106, 1.115, may be filed within 30 days of public notice of this order (see Section
1.4(b)(2), 47 C.F.R.  1.4(b)(2)).

     
                    FEDERAL COMMUNICATIONS COMMISSION




     
                    Diane J. Cornell 
                    Chief, Telecommunications Division
                    International Bureau