Salem-News.com - November 22, 2009 - 2:24 am
Search
About
Salem Area Chamber of Commerce
Keizer is a thriving community near Salem, Oregon

Zip Weather


Weather Forecast
Jul-13-2006 18:10printcomments

Commission Denies Qwest Business Services Deregulation Proposal

Theough their request is denied, Oregon will allow Qwest some pricing flexibility.


Qwest Headquarters

(SALEM) - Thursday the Oregon Public Utility Commission largely turned down a request by Qwest Communications Inc. to deregulate all telecommunications services it offers to businesses throughout Oregon.

Qwest claimed these services should be exempt from regulation because it is losing market share. However, an investigation by Commission staff found that Qwest still dominates the telecommunications market for business services outside of the Portland and Clackamas rate centers. In addition, market concentration measures suggest that the telecommunications market in Qwest’s service territory is not competitive.

“Most telling to me is the fact that Qwest has never reduced its prices to stem the loss of market share despite the fact that it can do so without prior approval of the PUC. With few exceptions, its business services are being offered at their maximum allowable prices,” Commission Chairman Lee Beyer said. “Is that competitive market behavior, I don’t think so.”

The order removes regulation for a handful of business services available from federal tariffs and, in the Portland and Clackamas rate centers, grants the company pricing flexibility for basic business service customers with four or more lines.

However, the Commission will continue to regulate services sold to small businesses in the Portland and Clackamas rate centers using fewer than four lines. And the Commission will also continue to impose price caps for popular business service options statewide.

In reaching its decision, the Commission examined Qwest’s market behavior as well as the markets themselves.

Qwest claimed all business services should be deregulated because it has competitors in every wire center and that it has allegedly lost market share.

The Commission concluded Qwest failed to meet its legal burden for customer, service and geographic markets out of the Portland/Clackamas area.

A major customer group, Telecommunications Association for Cost-Based and Equitable Rates (Tracer), opposed Qwest’s proposal. Tracer argued that prices would rise because there is insufficient competition.



Related
| | |

Comments [Return to Top]
Leave a comment on this story.
Name:

Enter the text from the image to confirm you are human.(Cookies are required)


HTML tags and certain characters are removed - (numbers, letters only or post may be cut short.) certain words are banned to stop spammers. All comments and messages are approved by people and self promotional links or unacceptable comments are denied.

©2009 Salem-News.com. All opinions expressed in this article are those of the author and do not necessarily reflect those of Salem-News.com.
Articles for July 12, 2006 | Articles for July 13, 2006 | Articles for July 14, 2006
Oregon's oldest auction family

Electric Wheels Inc...Your BEST source for electric vehicles!
Cool cars you CAN
afford to Drive!
503-485-0588

Use PayPal to
contribute to the
production of
"War and PTSD",
a Documentary:

Pioneer Pacific College...better yourself
Start School NOW!

Register for Fall today!
Salem Gymnastics Center

Oregon Wine Country: Eola Hills Winery and Vineyards

Adam's Rib Smokehouse
12th & State
Salem, Oregon

Raymo Mancini's new CD is available now!
Hear Raymo's Songs