Qwest’s Colo. bid for broad retail rate deregulation got support ...
Qwest’s Colo. bid for broad retail rate deregulation got support from a surprising quarter -- local rival MCI, which told the PUC that it supports “substantial rate deregulation at the retail level.” MCI said it was time to “clear…
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out the regulatory underbrush” of retail rate regulation in a competitive market, “which probably ends up being counterproductive for consumers.” MCI said the PUC should concentrate its regulatory efforts on wholesale rates, because local and interexchange competitors are still dependent on access to Qwest’s network to reach substantial numbers of customers. Qwest in July proposed to replace its price cap system with one that would deregulate retail rates for everything other than residential basic exchange, which is capped by state law, and certain public interest services like 911. Qwest temporarily withdrew that petition but plans to refile it in Oct. so the required legal notice to its customers can be sent out as an insert in regular monthly bills rather than by a special mailing. The petition was opposed by consumer interests who said there isn’t enough competition statewide to justify major rate deregulation.