Consider Increase A Wise Investment

Should US West be allowed to increase its telephone rates? This evening (see details in Glenn Blackmon’s column on this page), the state Utilities and Transportation Commission invites public comment on the question.

But the issue is bigger than whether residential phone bills will go up by $2.60 a month.

This is about a straining infrastructure we all use daily. US West’s old copper wires and analog switches just can’t handle the volume and technical needs from booming fax and Internet traffic.

This is about economic growth. Washington state’s corporations, home businesses, telecommuters and even home computer hobbyists need the service possible only with fiber optic cables and high-tech switching equipment. Cities like Spokane need high-capacity phone systems to attract desirable new employers such as software developers.

But why would US West invest in better equipment? In 1987, the UTC chopped US West’s basic rates and held them flat for a decade. At $10.50 a month for residential service, US West’s rate now is the lowest in the nation. After the proposed increase, your phone bill still would be lower than it was 10 years ago.

That’s not all.

Washington state clamps US West with one of the most stringent depreciation rules in the country. A 28-year depreciation schedule deters the company from replacing its copper wires. This, at a time when available technology improves at blinding speed. But not here.

Washington also is one of only eight states that still regulate a phone company’s rate of return. The 9.3 percent return allowed here is among the lowest in the country.

Meanwhile, US West’s competitors, free of these regulations, are investing aggressively and use US West’s wires to serve the customers they take from US West!

US West Vice President Scott McClellan says his company is investing in modern infrastructure - in other states. But “we can’t invest in a state where we can’t make any money,” he says.

Washington’s best interests require UTC to grant the rate increase. UTC should, however, make sure the money does go into a better system and better service. It’s simple, really. You get what you pay for, and our state - home of Microsoft, for crying out loud - ought to recognize that, in order to keep the economy growing, it must provide the telephone infrastructure that modern businesses and consumers need.

, DataTimes The following fields overflowed: CREDIT = John Webster/For the editorial board