Qwest forbearance approval “critical”

The volley of letters of support and opposition to Qwest Communication Inc.’s attempt to gain forbearance in the Phoenix market continues as another organization has pledged its support for the largest telephone operator in the state and third largest in the country.

The Communications Workers of America, a national trade organization that represents more than 700,000 telecommunications, technology and public service workers, is backing Qwest’s forbearance petition with the Federal Communication Commission. The FCC has until July 26 to decide whether Qwest can be deregulated from state control in the Phoenix metropolitan area. If granted, Qwest would be able to charge its own pricing on wholesale prices it charges competitors to use its infrastructure.

“At a time of increased challenges in the marketplace, it is critical that Qwest receive forbearance so that it has the flexibility it needs to become a stronger competitor against providers who are not subject to the same regulatory restraints,” wrote Larry Cohen, CWA president. “These are dynamic times in the communications industry, and the public interest will be well served by providing Qwest with this necessary regulatory relief.”

CWA represented more than 20,000 Qwest employees. It also claims employees from the media, health care, higher education and law enforcement.

The CWA supports Qwest’s claims that competitor that use new telecommunications technologies such as cable, wireless and voice over Internet protocol (VoIP), constitute the necessary levels of competition to allow Qwest deregulated wholesale pricing. According to the 1996 Telecommunications Act, Qwest, AT&T Communications Inc. and Verizon Communications Inc., must be regulated by state agencies such as the Arizona Corporation Commission.

If, however, the only three telecommunications monopolies can prove that there is adequate competition in certain markets, they can receive forbearance in those areas. The FCC must approve the decision.

“CWA is acutely aware that very healthy telecommunications competition now exists in the greater Phoenix, Seattle, Minneapolis-St. Paul, and Denver markets,” Cohen wrote. “Our union members see it every day.”

Cohen wrote that 15 million telephone customers use cable-based telephone and data systems, up from 4 million three years ago. He also estimates more than 13 million telephone users have “cut the cord” and turned to cellular and wireless communication.

According to Cohen, Qwest has lost approximately 30 percent of its customers in the four markets it is asking for forbearance.

“It is not appropriate to continue to require Qwest, by regulatory mandate, to keep subsidizing its competitors; it is time for the FCC to grant Qwest’s forbearance request for the four markets.”

Ty Young can be reached at ty@aztechnews.net.