Qwest Granted Partial Deregulation

The state has approved a request from the phone company Qwest that will make it easier for Qwest to raise some rates in the future.

The Washington Utilities and Transportation Commission announced Tuesday that it has approved Qwest’s proposal to deregulate business phone service in Bellevue, Spokane, Seattle and Vancouver. The deregulation only applies to large-volume business customers with DS-1 or higher-capacity circuits in those cities.

The UTC determined that in those markets, Qwest faces effective competition and thus shouldn’t be held back by additional regulations. Qwest, formerly known as U S West, is the state’s largest local phone provider.

Previously when Qwest wanted to raise prices, it had to give 30 days’ notice and had to get regulators’ approval first. Now, Qwest will be allowed to increase rates on business customers using high-capacity circuits by giving 10 days’ notice. And the company will not need regulatory approval. Those are the same rules followed by Qwest’s competitors in that market.

Qwest spokesman Michael Dunne said he did not know how many business customers would be affected by the changes. But he said Qwest’s share of the Spokane market subject to the commission order has dropped to 55 percent from almost 100 percent since 1995, when several competitors began offering their services in the city.