Feds Recommend Letting Qwest Back Into Long-Distance Business

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October 28, 2002
Federal antitrust authorities have given their blessing to Qwest Communications' bid to offer long-distance telephone service in nine states.

The Justice Department last week recommended that the Federal Communications Commission (FCC) approve the company's application to sell long-distance and data services in Colorado, Idaho, Iowa, Montana, Nebraska, North Dakota, Utah, Washington and Wyoming. Qwest is the primary provider of local telephone services in the states covered by the recommendation.

The department said there is adequate competition for local service in those states to justify allowing Qwest to offer long-distance service. Primary local carriers are barred from offering long-distance until their local networks are found to be sufficiently open to competition.

Qwest, the nation's No. 4 local telephone carrier, is under investigation for alleged accounting irregularities by the Justice Department, the Securities and Exchange Commission and Congress. The Denver-based company has recently been fined for consumer violations by California, Colorado and Utah.

It is the only one of the top four local carriers that has not yet won approval to offer long-distance service in any of its home states. Qwest previously offered long-distance service in 14 states but when it acquired U S West in 2000, it had to exit that business in the former U S West states.

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