The N.M. Public Regulation Commission (PRC) unanimously approved ...
The N.M. Public Regulation Commission (PRC) unanimously approved Qwest’s $270 million offer to end a suit over Qwest’s $224 million shortfall on a 2001 investment commitment. The PRC spurned consumer group calls for draconian penalties to ensure Qwest complies…
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with the new investment deal. Instead, it stuck to the original penalty clause calling for fining the carrier $10,000 each day it isn’t complying with the deal’s investment schedule after 21 months. The fine would accrue until Qwest was in compliance. The agreement also allows the PRC to order as many audits as it needs to monitor compliance and includes clauses intended keep Qwest from escaping its commitment. The PRC kept a provision requiring Qwest to give back $10 million to customers for quality failures -- about $12.50 per account. Qwest must deploy broadband service in 23 communities now lacking it, expanding broadband availability to 83% of Qwest exchanges from 69%, and rural broadband availability to 50% of rural exchanges from 27%. The pact requires general upgrades to Qwest’s network, including rural 911 and facilities serving federal installations such as White Sands Proving Ground. Qwest will file a detailed timetable for the network projects within weeks. Qwest must set up a $5 million fund for technology grants to disadvantaged public schools. Qwest late last winter was ordered by the PRC to refund $224 million -- about $250 per account -- to compensate customers for Qwest’s failure to honor a 2001 commitment to invest $778 million in its network by 2006, made as part of a price cap regulation agreement. Qwest failed to get state courts to overturn the refund order. Its last-ditch appeal was pending when it made the settlement offer.