Us West Appeals For Higher Rates Trujillo Brings Request For Legal Changes To Spokane Audience

US West Communications president Solomon Trujillo appealed to Eastern Washington business leaders and elected officials on Monday to let the company raise telephone rates where needed and put a stop to competing companies that take the best customers but don’t have to provide telephone service to every home.

Trujillo, who was named president and chief executive officer last year, warned that if the Colorado-based company can’t raise rates to cover its cost of service and compete with AT&T and others targeting big business accounts, the telecommunications network will break down.

“We’re trying to change the environment so we can rebalance rates,” Trujillo said, mixing his plea for political support with a sales pitch for new US West internet services. “We want the support of those we’ve been serving.”

Trujillo spoke to about 100 people at the Spokane Ag Trade Center. Included were leaders of the Spokane Area Chamber of Commerce and state Reps. Duane Sommers and Larry Crouse and state Sen. Eugene Prince.

US West controls 80 percent of all Washington telephone lines and says it spends $1 million a day installing equipment and making improvements statewide. However, it claims to lose money on residential lines, where basic service starts at $10.50 per month.

The Washington Utilities and Transportation Commission in April rejected a US West request to double household telephone rates over four years. Rather, the commission ordered the company to cut its rate in a ruling that spanked the company for its record of poor service to customers, including 150,000 in Spokane.

Trujillo said installation delays that troubled US West customers in 1994-95 have been reduced by 40 percent.

But Marilyn Meehan, spokeswoman for the utilities commission, said service is worse than ever. Consumer complaints about slow US West installation have grown from 755 in the first six months of 1995 to 773 through July 10 of this year, she said.

“The numbers have not gone down and for most of us, it’s still US West, or nobody at all,” Meehan said, adding that nine competing companies have been authorized by the commission to provide telephone service. However, most of them are in their infancy and do not provide serious competition.

As US West’s hopes for getting more residential revenue grow dim, the company is targeting businesses with an expanded line of internet services.

The Spokane Research and Technology Institute said it is nearing completion of a market test for US West with 71 participating companies using !nteract a US West networking service. Among other things, the system will let companies easily monitor and bid for federal contracts.

A US West price list showed that !nteract access fees range from $8.95 to $295 per month. But the federal procurement service was touted by one user as a good way for small businesses to compete against corporate giants.

“Nobody knows we’re from Otis Orchards, and that’s why we’re able to do business worldwide on the internet,” said Bruce Gage, with WOW Pollution Control Systems, a Valley environmental clean-up company that’s part of the SIRTI test-market group. “A whole new market has opened up to us.”

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