TELEPHONE (51 7) TELECOPIER (51 7) August 28, 1998

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1 TELEPHONE ( TELECOPIER ( August 28, 1998 Ms. Dorothy idean Executive Secretary Michigan Public Service Coission P.O. Box 3221 Lansing, MI 4899 MICHIGAN P:!ELlr: SERVICE CeuMs:;:;[{Jg\J Al i!:.,;;yjb Dear Ms. idean: Re; Case No. U MPTA, et a1 v Aeritech and GTE MCI Petition for Leave to Intervene Enclosed please find original and fifteen copies of MCI Telecounications Corporation Petition for Leave to Intervene in the above referenced atter. Also enclosed is Proof of Service upon the Parties of Record. If there are any questions or coents, do not hesitate to contact e. Sincerely, DYKEMA GOSSETT PLLC AE/j b Enclosures cc: Ji Denniston Parties of Record Albert Ernst

2 STATE OF MICHIGAN A\jr; 5 '!998 BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION // The Michigan Pay Telephone Association, et a1 1 I/ Coplainants, i t.- v. (1 1 5 Michigan Bell Telephone Copany 5 d/b/a Aeritech Michigan, a Michigan corporation,? and ci Case No. U f GTE North Incorporated, a isconsin corporation, h Respondents. i LL LU 6 Coplaint pursuant to Sections 23,24 and 318 = of the Michigan Telecounications Act to copel 2 respondents to coply with Section 276 of the 5 Federal Counications Act. P MCI TELECOMMUNICATIONS CORPORATION PETITION FOR LEAVE TO INTERVENE t Pursuant to Rule 21 of the Coission's Rules of Practice and Procedure, R , MCI Telecounications Corporation ("MCIJ petitions for leave to intervene in the above captioned atter. In support, the following is stated: d f X 1. In its orders in Cases Nos. U-7853 and U-8946, dated April 23, 1985 and Deceber u 22, 1987, respectively, the Coission authoried MCI to provide interlata and intralata toll telecounication services. ul ul u 2. In its orders in Case No. U-1138, dated February 24, 1994 and July 19, 1994, the Q 2 Coission granted MCI authority to provide 1 + intralata essage toll service on a dialing parity n I basis with Aeritech Michigan ("Aeritech' and GTE North Incorporated ("GTE1. ll 3. MCI has intervened or actively participated in the vast ajority of proceedings before 11 this Coission relating to the transition fro a onopoly to copetitive telecounications environent.

3 4. MCI has intervened or actively participated in a large nuber of coplaint 11 proceedings before this Coission, e.g., the MCI intralata dialingparity coplaintproceeding, I1 Case No. U-1138; the Sprint billing insert coplaint, Case No. U-11138; the AT&T access /I degradation coplaint, Case No. U- 1124, etc. I 1 5. MCI has intervened or actively participated in dockets concerning Aeritech b $ Michigan's and GTE's total service long run increental costs and the prices of unbundled cn q network eleents, interconnection services, resold services, and basic local exchange services in $ Cases Nos. U-1128 and U-11281, aong others. ci 6. MCI intervened in In the atter of the petition of the MICHIGANPAY TELEPHONE 5 ASSOCIATION to initiate an investigation to deterine whether Michigan Bell Telephone Copany F 5 d/b/a Aeritech Michigan and GTE North Incorporated are in copliance with the Michigan Telecounications Act and Section 276 of the Telecounications Act of 1934, as aended, Case g No. U The cost studies produced in that case are a focus of the present proceeding. P 7. MCI islwas a party in a nuber of appeals of Coission orders to the Michigan al t L (1 t Court of Appeals. toll service. 8. MCI is a copetitor of Aeritech and GTE in the provision of intrastate intralata rn 9. As copetitors of Aeritech and GTE, MCI is directly affected by the issues set! forth in the MPTA coplaint/application. I_ < o 1. Aeritech Michigan and GTE are required to restructure their operations to provide cost based (i.e., in conforance with the New Services Test and nondiscriinatory rates for a C lii noncopetitive services, and Aeritech's and GTE's copetitive pay phone operations are required to not be subsidied fro noncopetitive ratepayers as set forth in paragraphs 74 through 76 of the coplaint/application. They were required to do this by April 15, To the best of MCI's Y " knowledge, Aeritech Michigan and GTE have not deonstrated copliance with the II 11 Telecounications Act of 1996 or the FCC's requireents. MCI should not be required to pay any 11 aounts charged in excess of the appropriate aount.

4 , I a 11. Rates charged by Aeritech and GTE, as set forth in the coplaint/application seek to recover ore than cost and ore than a reasonable aount of their coon expenses, thus adversely affecting MCI. 12. MCI's substantial interests are affected by the potential recovery by Aeritech 11 Michigan and GTE of pay phone costs and subsidies fro exchange access services. 1 1 r- r To the extent that Aeritech Michigan and GTE continue to also recover or charge for the costs associated with their pay phones through their excessive access charges assessed to 1 1 $ MCI, Aeritech Michigan and GTE are in violation of the Telecounications Act of 1996 and 2 H FCC regulations The Coission needs to require that Arneritech and GTE provide the Coission ; with evidence and studies that were required to have been provided by April 15, 1997, i.e., to 3 f ;i establish that all expenses associated with payphone operations have been reoved fro the total service long run increental costs associated with exchange and exchange access service; that 2 required iputation tests have been passed; and that Aeritech be required to coply with the I - L nonstructural safeguards required by Section 3 18 of the MTA, as described in the FCC's orders in Docket No k 15. The present quality, general availability, or conditions for the regulated service (the provision of pay telephone service by Aeritech and GTE are adverse to the public interest As a copetitor of Aeritech and GTE, MCI eets the "one of interests " test. See, and 35 of the MTA. 17. As a purchaser of telecounications services fro Aeritech and GTE, MCI eets a Q the "one of interests " test. C LU Lo (I 18. If the Coission allows Aeritech and GTE to continue the actions cited in this 2 docket, without firther review and analysis, MCI will be adversely affected and unable to effectively Y " copete. Thus, MCI eets the "injury in fact" test. 19. Even if it is deterined that MCI does not eet the two-pronged test for standing, the Coission should allow perissive intervention as a atter of discretion. Significant policy 3

5 /I atters are at issue, the evolving copetitive telecounications arket is affected, and MCI is in 1 position to provide useful and unique inforation to the Coission. I/ 2. No other party to this proceeding can adequately represent MCI's interests in this 11 docket. I/ 21. MCI represents that its intervention will not unduly delay the resolution of this atter. r. r- HEREFORE, MCI respectfully request that its intervention be allowed, that it be granted the rights of a full party in interest, and that it be allowed to participate in this proceeding. a I? Respectfully subitted, MCI TELECOMMUNICATIONS CORPORATION By: DYKEMA GOSSETT PLLC 8 Michigan National Tower Lansing, Michigan ( MCI TELECOMMUNICATIONS CORPORATION '45 North Michigan venue' Suite 37 Chicago, Illinois 661 ( i u Dated: August 28, 1998

6 II STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION /I The Michigan Pay Telephone Association, d a1!i Coplainants, t. t. F v. $ Michigan Bell Telephone Copany $ d/b/a Aeritech Michigan, a Michigan corporation, c7 \ - 5 and i Case No. U f GTE North Incorporated, a isconsin corporation, 4 Respondents. 1 LY 5 Coplaint pursuant to Sections 23,24 and 318 : of the Michigan Telecounications Act to copel 2 respondents to coply with Section 276 of the ~~IC~IGAN 5 PUBLIC SE~! Federal Counications Act. 1 FILED 1 j 1 't:: STATE OF MICHIGAN ss. COUNTY OF INGHAM PROOF OF SERVICE AVG Susan Vandersloot, being first duly sworn, deposes and says that on the 28th day of August, f 1998, she caused to be served upon the parties listed on the attached Service List, copies of MCI i 6 t Telecounications Corporation Petition for Leave to Intervene in the above-captioned atter by : United States first class ail. 5 Subscribed and sworn to before e this " 28th day of August, 1998 II Susan Vandersloot 1@a County, MichiGn My coission expires: 611 9/1

7 SERVICE LIST Henry T. Kelly O'Keefe Ashenden Lyons & ard 3 North LaSalle, Suite 41 Chicago, IL 662 I/ Michael Holes Aeritech Michigan $ 444 Michigan Avenue, Roo 175 $ Detroit, MI 48226, 4 t illia Keating GTE North $ 1 Executive Drive " Marion, OH LA\ ID\ AE 3 P

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