Qwest pricing bill draws fire

Qwest Communications International Inc. wants many of the same pricing freedoms its competitors have, but a bill that would give the company that power in Utah drew criticism on Wednesday.

Jerry Oldroyd, an attorney representing cable television company Comcast, told the Legislature's Public Utilities and Technology Interim Committee that the bill needs more input from Comcast and other competitors. He suggested that it needs to be broader and address even more competition issues.

The committee passed the bill out but wants a legislative standing committee to take up the discussion during the general session.

"We aren't putting a stamp of approval on this bill," said Rep. Ralph Becker, D-Salt Lake. "We're saying this is a concept worthy of discussion, and everybody needs to come to the table."

In presenting the bill, Rep. Stephen Urquhart, R-St. George, said significant changes have occurred since the state passed a comprehensive telecommunications competition act in 1995. Qwest, he said, now faces competition from other wireline companies, cable TV-based telecom providers, wireless companies and voice-over Internet protocol services. The number of wireless customers in the state totals 1.1 million, more than the number of wireline connections.

A Utah Public Service Commission report this fall said Qwest controlled 84 percent of the market in 2001 where it faced competition in Utah, but that number had dwindled to 74 percent this year. Qwest's share of the residential market fell from 94 percent to 85 percent during that time, while its share of the business market slipped from 68 percent to 53 percent.

"It's now time to remove restrictions the 1995 act imposed on Qwest," Urquhart said. "Given today's rigorous competition, this bill eliminates many of the differences in regulatory requirements between Qwest and its competitors and provides greater equity of regulation for Qwest.

"In essence, it lightens the regulations for Qwest to the same level currently enjoyed by (competitors) like XO, MCI, AT&T, McLeod and 30 other providers who operate in Utah."

The bill would eliminate complicated pricing requirements and let market forces determine pricing, he said.

Among the bill's provisions are a caveat that basic residential service rates be frozen at July 1, 2004, levels, although the Public Service Commission could eliminate that if competitors offer comparable services at comparable prices. Jerry Fenn, Qwest's Utah president, said 20 percent of residential customers have basic service.