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AG Resists Qwest Rate Rise Plan
Dec 10, 2009 (Albuquerque Journal - McClatchy-Tribune Information Services via COMTEX) --
State regulators are nearing a decision on a proposal to allow Qwest Communications to raise what it can charge residential and business phone customers for basic local exchange and other services over the next three years.
A hearing officer has recommended allowing Qwest to raise the rate for basic residential and business service by up to $1 in each of the next three years, an increase of up to 22 percent for residential customers, and up to 8.7 percent for business customers. The current residential rate is $13.50 a month. The business rate is $34.37 a month.
The Attorney General's Office has asked the Public Regulation Commission to deny the hikes.
"Qwest's proposed rate increases hit those least able to afford them," Attorney General Gary King said in a news release. "Further, if the PRC does not order additional investment in high speed Internet, rural New Mexicans will be faced with decreasing possibilities of getting access to this new technology."
Qwest contends it needs rate flexibility to respond to unregulated competitors. "Last year alone, we lost more than 60,000 land lines due to unregulated competition and are on track to lose even more this year," Qwest New Mexico President Loretta Armenta said.
At issue is Qwest's Alternative Form of Regulation plan filed with the PRC earlier this year. It would go into effect Jan. 1, pending the commission's approval.
In addition to raising the local exchange rate, Qwest also would be permitted to raise rates for all other regulated services -- such as call waiting or voice messaging for residential customers, or PBX and private line services for businesses -- up to 4 percent a year, or a maximum of 12 percent over the three-year period.
Armenta said Qwest New Mexico has invested more than $220 million in New Mexico, $93 million of that in broadband, over the last three years. "Qwest will continue to invest in New Mexico as we respond to aggressive unregulated competitors such as cable, wireless, and VoIP providers," she said.
To see more of the Albuquerque Journal, or to subscribe to the newspaper, go to
http://www.abqjournal.com. Copyright (c) 2009, Albuquerque Journal, N.M.
Distributed by McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax
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