Local CLECs say Qwest pricing push would drive out competition

LOCAL CLECS SAY QWEST PRICING PUSH WOULD DRIVE OUT COMPETITION
[SOURCE: Minneapolis-St. Paul Business Journal, AUTHOR: Katharine Grayson]
A push by Qwest Communications International for further deregulation in the Twin Cities market is drawing opposition from smaller competitors, who say they will be forced to increase prices. Denver-based Qwest is seeking federal approval to set its own rates for other telecom companies who lease its network wiring. Those rates are now determined by the Minnesota Public Utilities Commission (MPUC), under regulations put in place to foster competition in the telecommunications market. If Qwest's request is approved, regional competitors who rely on its network infrastructure say they likely will have to pay higher prices. Many of those firms, known as competitive local exchange carriers (CLECs), cater to small and mid-sized firms. Those customers likely will be hit hardest by the move, company officials say. Qwest, meanwhile, argues competition from cable and wireless companies has grown strong enough that it should no longer have to lease its wiring at below-market rates. It also notes there other telecom companies in the Twin Cities that lease network wiring, which will ensure Qwest keeps its rates competitive.
http://www.bizjournals.com/twincities/stories/2008/04/07/story4.html?ana...


Local CLECs say Qwest pricing push would drive out competition