Sale Of Rural Phone Exchanges Gains Approval

State regulators have given the go-ahead for US West Communications Inc. to sell more than two dozen rural Washington telephone exchanges to Pacific Telecom Inc., for $92.6 million.

The Utilities and Transportation Commission found the deal was in the best interests of the companies and their customers.

The agreement still must be accepted by the Federal Communications Commission.

Nearly 8,000 Eastern Washington customers will be affected in the following exchanges: Almira, Coulee City, Edwall-Tyler, Harrington, Lind, Nespelem, Odessa, Ritzville-Benge, Royal City, Sprague, Starbuck and Wilbur.

Another 12,000 customers in Western Washington will also be affected.

As part of the agreement, Pacific Telecom, known as PTI, has agreed to retain US West rates for the new customers for two years.

Rates for present PTI customers will be frozen for five years.

Taking Ritzville as an example, US West customers pay $9.30 per month for service. PTI customers with access to the same number of exchanges pay $12.40, according to state commission spokeswoman Marilyn Meehan.

PTI has agreed to spend $25 million over the next five years to improve and expand service in the affected areas, according to a commission statement.

US West will apply $1 million of the sale proceeds towards reductions in long-distance access fees, and $4.1 million towards equipment upgrades in rural areas it will continue to serve.

Since last year, US West has sold many of its rural-service areas throughout the 14-state territory where it operates.

, DataTimes