Qwest seeks long distance connection.

Byline: SHERRI BURI McDONALD The Register-Guard

By late April, Oregonians may have a new choice for long distance phone service: Qwest Communications International Inc.

Well-known in Oregon as the dominant local phone service provider, Denver-based Qwest on Wednesday filed for permission from federal regulators to offer long distance service in Oregon, New Mexico and South Dakota.

Major long-distance players such as MCI Worldcom said they're fighting Qwest's move.

The Qwest filing comes just a few weeks after the Federal Communications Commission approved Qwest's application to provide long distance in nine other states, and Qwest anticipates filing similar requests soon for the two remaining states in its 14-state territory: Arizona and Minnesota.

Qwest hopes that the FCC will OK its latest filing so it can offer consumers a new choice, simplified all-in-one billing, and better prices, said Judy Peppler, Qwest's president for Oregon.

Qwest is seeking FCC approval to seek to sign up nearly 1.5 million long distance lines in Oregon. About 70 percent would be residential customers, and 30 percent businesses, Peppler said. The lines could be either new service or existing lines with other long distance providers.

"The real beneficiaries will be the customers," Peppler said. "They will see increased competition in long distance from us and other providers."

The Oregon Public Utility Commission will recommend that the FCC approve Qwest's request to offer long distance service in the state and hopes Qwest's entry into the market will spur competition and drive down prices, said Phil Nyegaard, administrator of the PUC's telecommunications unit.

But competitors, such as AT&T and MCI, don't think Qwest's presence in long distance will have much impact, and they dispute the PUC's finding that Qwest has sufficiently opened its local markets to competition for local phone service, as is required under the federal Telecommunications Act of 1996.

"We already have competition in the long distance market," said Timi Aguilar, spokeswoman for Denver-based AT&T Corp. "We've seen a fall in long distance prices," she said. "What consumers want to see is a fall in local service costs, and competition in the local service market."

AT&T disagrees with the finding of state regulators that Qwest has shown that its local service market is open to competitors. AT&T offers local service to businesses in Oregon, but it hasn't gone after residential customers because of the "outrageous wholesale rates" Qwest charges competitors to lease parts of its network, Aguilar said. A cost case is currently pending before the Oregon PUC, she said.

Carolyn Berthelette, spokeswoman for MCI Worldcom, said MCI plans to file comments with the FCC opposing Qwest's application to offer long distance in Oregon, New Mexico and South Dakota.

In order to be able to offer long distance service, Qwest must meet standards, such as showing that it offers all competitors access to its local network, utility poles and other equipment, as well as such services as 911 and directory assistance.

The standards are outlined in the Telecommunications Act of 1996.

Qwest refers to its latest request with the FCC as a "re-entry" into the long distance market because it was founded in 1997 as a long distance provider. When it merged with local service provider US West in July 2000, Qwest was required to sell its long-distance business. As a former Bell subsidiary, US West was prevented from offering long-distance service in its territory since the breakup of Ma Bell in 1984.

Now Qwest is trying to re-enter the long-distance business throughout its territory.

The FCC has until April 26 to decide whether to approve Qwest's request.

If the FCC gives the green light, Qwest would be able to quickly unroll services in Oregon because it already is selling long distance in nine other states.

After just a week of offering long distance services in those states, Peppler said, sales are exceeding projections by about 33 percent.