Qwest gets state permission to raise some prices
PHOENIX - Qwest Communications won approval from state regulators
to raise some residential and business prices, a move expected to
cost Arizona ratepayers nearly $32 million in the coming year.
The deregulation plan approved Thursday by the Arizona Corporation
Commission eliminates the need for the communications provider to
notify regulators when it intends to do special promotions.
The plan makes several major changes in service categories and pricing
structures, but it does not allow Qwest to raise fees for basic
phone lines and other services that customers cannot get from other
companies.
Denver based Qwest has been pushing the plan in Arizona and elsewhere
so it can shore up its business against competitors in cable, wireless,
Internet based and other sectors. The one time monopoly has seen
its Arizona access lines drop from 3.3 million to 2.3 million in
the past five years.
"We're very pleased with the plan," Qwest spokesman Jeff
Mirasola said. "It gives us the flexibility in pricing packages.
We can also institute promotions without having to telegraph them
to our competitors."
Qwest's services will be split into several categories and pricing
structures. The company can now raise rates up to 25 percent on
non essential services such as caller ID, call forwarding and other
features. And it will be able to freely price services such as toll
free calling and voice mail that can be bought from other companies.
The company also will be required to reduce rates in some cases.
The company must cut annual fees it charges other carriers to use
its lines and wires by $12 million, for example.
Other fees that will go down include costs for non published telephone
numbers, which will drop from $1.65 to 90 cents.
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