[January 01, 2009]

Thousands Lose Net, Telephone Service: 911 systems, hospitals affected after Qwest cuts off local provider

Jan 01, 2009 (Albuquerque Journal - McClatchy-Tribune Information Services via COMTEX) --
Thousands of New Mexicans are without phone and Internet service this week because of a payment dispute between Qwest and a local service provider.

Several 911 services, hospitals, banks and local authorities were disconnected as well, leaving New Mexicans who rely on them in the lurch.

The New Mexico Public Service Commission was scrambling late New Year's Eve to find even a short-term solution.

A federal judge will be hearing the two parties' arguments Jan. 13, so the PRC issued an interim order late Wednesday: Qwest must immediately begin restoring service to "critical" customers, including local governments, public safety, hospitals, banks and other such facilities. Qwest warned that could take several days.

Qwest cut service to SkyWi Inc. and subsidiaries, including OneConnect IP and ZiaNet, beginning at 3 a.m. Tuesday, said Qwest spokesman Mark Molzen. SkyWi is the state's largest independent Internet service provider, with about 13,000 customers. It is based in Albuquerque and operates in six states.

The issue was brought before the PRC, which called an emergency meeting Wednesday night because it deemed the matter a public safety and economic crisis.

During the meeting, the PRC told Qwest that if it does not restore the services by 8 a.m. today, it must show why it shouldn't be sanctioned by the PRC. During the meeting, Qwest claimed it would take days, maybe even a week, to restore all service. Qwest was ordered to report its progress to the PRC by 10 a.m. Friday.

The PRC has no jurisdiction over Internet company SkyWi, which it scolded for allowing its services to be disconnected without notifying its customers. It urged the company to hand control of its phone numbers to the actual customers, so they could seek other providers if they want.

Since the service was cut, the PRC has received calls from concerned municipalities, business people and residents, who said the outage is costing them both safety and money.

The Roswell Medical Center was down, as were several 911 systems, said PRC Chairman Jason Marks. One nonprofit called Marks to say it couldn't process payroll; another claimed it will be forced into bankruptcy if the matter isn't resolved soon.

At issue, Qwest says, is about $1.7 million owed to the communications giant. SkyWi has known of Qwest's intent to disconnect service for at least 10 days but did not notify its customers, nor did it contact Qwest to make payment arrangements, Qwest said.

In a news release, SkyWi suggested the matter is much bigger than nonpayment.
"We believe we are under attack by Qwest Communications," SkyWi President Jack Leach said in the release. "SkyWi filed a lawsuit against Qwest in federal court in New Mexico earlier in December regarding Qwest's predatory anticompetitive and unfair trade practices."

Qwest bega n dema nding payment in November. According to copies of documents Qwest sent to the Journal, it had issued bills totaling $581,921.06 at that time. SkyWi paid about a third of that. Qwest served a 10-day notice that service would be disconnected. When SkyWi didn't respond by Qwest's deadline, plans were put in motion to cut service.

"We asked for something in writing saying they would pay it by Friday," spokesman Molzen said. "We were going to extend the deadline. Had they responded, given us assurance, then their service would still be on. Unfortunately for their customers, they chose to ignore the request."

Qwest claims the company now owes more than $1.7 million, but it would extend services if SkyWi paid the $581,000 and continued to negotiate.

PRC Commissioner Sandy Jones said he believes both companies acted improperly, because thousands of New Mexicans lost access to urgent and emergency services.

"If anyone can go to bed and sleep very good tonight about the way they treated these people, good luck," he 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
to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave.,
Suite 303, Glenview, IL 60025, USA.

[ Back To TMCnet.com's Homepage ]

Discussions: