ICAN HALTS THE DEREGULATION OF QWEST RESIDENTIAL TELEPHONE SERVICES!

This spring, Qwest fought for a regulation free ride. First, Qwest asked the Idaho Public Utilities Commission (PUC) to allow it to raise rates for local service without going through the PUC for approval. Qwest claimed that competition from cellular phones meant that it was no longer a monopoly in some markets, and it should be free from rate regulation. The PUC denied the request, deciding that Qwest had not shown that cellular phones were actually effective competition for local service.

Qwest claimed that the request for deregulation wasn’t about raising rates on consumers, but it was clear that they weren’t telling the real story. While executives promised not to raise rates for the rest of 2004, they stated that they might raise rates as much as 38 percent by 2007. And they wouldn’t commit to limiting the rate hike to 38 percent! In any case, Qwest is free to LOWER rates while still regulated by the PUC, but hasn’t. The PUC ruling stated the obvious – that Qwest’s claims of competition from cellular phones weren’t backed up by any real evidence.

Unwilling to accept the PUC’s denial, Qwest turned to the Legislature. ICAN members fought back, generating 400 faxes to stop deregulation. Qwest pushed through a late-night surprise vote in the Idaho Senate, winning deregulation by a vote of 18 to 17. But ICAN members didn’t give up – they continued through the evening to fax and phone key Senators. The following day, the Senate (18 to 17) voted for reconsideration and, in the following final vote, deregulation was defeated (17 to 18). In the floor debate, Senate President Pro Tem Robert Geddes – one of the Senate leaders we targeted – talked about being overwhelmed with all the communication he had received from constituents opposing the deregulation.