State Strikes U S West Deal

U S West Inc. and merger partner Qwest International Communications Inc. would freeze rates until 2004 and make extensive investments in Eastern Washington under the proposed settlement with Washington officials announced Monday.

The companies also agreed to pay as much as $20million a year to customers if they fail to meet any of eight different service benchmarks.

Kirk Nelson, U S West president for Washington, said officials are confident the new company will continue to improve its service record.

“We are going to meet customer expectations right up front,” he said.

U S West serves 80 percent of Washington residents and businesses. The company was roundly criticized in the 1990s for allowing service to deteriorate as it cut staff.

As part of the settlement, Qwest will provide a $5 credit if phone service is not restored within two days, and a full month’s credit if service is out for more than a week.

Full-month credits will also apply to exchanges bedeviled by frequent periods without dial tone.

The company must comply with a consumer bill of rights covering quality and courtesy.

“Putting $20 million at risk to performance standards will give Qwest a big incentive to provide good service to U S West customers,’ said Glenn Blackmon, the commission’s assistant director for telecommunications.

He noted the agreement also commits Qwest to major upgrades of its network in Eastern and Central Washington.

In Spokane, three analog switches will be upgraded to digital by year end.

Fiber-optic service will be instituted between Spokane and Colfax, from Spokane to Coulee Dam, and from Deer Park to Colville.

Ephrata and Pateros will be connected to Coulee Dam. Pomeroy and Lewiston will be linked to Colfax.

Those routes must be in place by the end of 2002.

Nelson said officials do not yet know whether they will install those lines or lease them from other providers.

Qwest also must invest $1 million a year for three years to extend service to now-unserved areas.

A hearing on the deal negotiated with the Attorney General’s Office and staff of the Washington Utilities and Transportation Commission will be held in Spokane next month.

Other hearings are scheduled in Olympia, Vancouver and Bremerton.

The deal would then be voted on by the three utilities commissioners, probably this summer.