Us West Drops Bid To Deregulate Local Phone Rates Company Will Pull Proposal From Telecommunications Bill

US West has abandoned efforts to convince the state Legislature to deregulate local telephone rates in Washington.

One consumer group on Tuesday called the utility’s decision “a major win for telephone consumers, especially the elderly.”

The chief US West lobbyist, Tom Walker, notified the state House and Senate utilities committees this week that deregulation of local rates will be pulled from a telecommunications bill the utility seeks in the upcoming legislative session.

The region’s largest phone company had proposed taking away the power of the state Utilities and Transportation Commission to set local rates. Critics had warned the move could mean skyrocketing rates, but Walker had insisted that competition could drive rates down.

“We decided to take the fear of the unknown out of the discussion and say we’re willing to set the issue aside,” Walker said in an interview with The Seattle Times.

He said the company still favors deregulation, but figures it won’t be politically palatable until more competition materializes.

Rep. Larry Crouse, R-Spokane, chairman of the House panel, praised the utility’s decision. The deregulation flap would have diverted attention from other pressing issues, including how competitors can lease US West’s local phone lines and how to ensure that unprofitable rural areas still get good service, he said.

Gerald Pollett, executive director of Heart of America Northwest, called the decision “a major win for telephone consumers, especially the elderly who could least afford their local bills to double.”