PSC to reconsider ruling on Qwest pricing

The Utah Public Service Commission will take another look at whether Qwest Corp. deserves the freedom to set its own prices in areas where it faces competition from Comcast Cable Communications Inc.

Last fall, Qwest sought to get full freedom for basic residential service rates in areas served by 44 of its central offices.

The commission later ruled that Qwest should get that freedom to set prices, capped at the current regulated rates, in areas where competition exists from Comcast. In non-Comcast areas, Qwest was denied pricing freedom, meaning the current tariff rates remained.

State law calls for pricing freedom to be granted if a competitor has started to provide the same or substitutable telecommunication services in a given geographical area. Whether that exists in Utah was a bone of contention during hearings on the matter.

The commission on Thursday said it would reconsider the matter, but only to determine if the Comcast offerings meet that "same or a substitutable service" threshold when compared with Qwest's basic residential phone service. It said its original decision was based on price-list information Comcast had provided and Comcast's interpretation of that information, and added that Comcast has "reaffirmed that this basic residential telephone service is ostensibly offered in its service territory."

The Utah Committee of Consumer Services had asked the commission to reconsider the matter. During hearings last fall, it contended that Comcast did not provide a stand-alone basic service that was the same or substitutable for Qwest's basic service offering.

The committee has submitted affidavits about people's ability to get the Comcast service, on which the commission's decision was based. The commission said Thursday that Qwest should be able to respond to those affidavits and that the commission "should have a clear and adequate record upon which it may rely when applying the statutory requirements to grant pricing flexibility."

Thursday's actions do not affect pricing freedom Qwest received last fall for business in areas served by 19 central offices.

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