US WEST is bowing out of the telephone business in six small southern Utah counties and has reached an agreement to sell six other exchanges.
Ownership of exchanges in Wayne and Garfield counties became effective Feb. 21 and were purchased by the South Central Utah Telephone Association, headquartered in Escalante. The independent utility also plans to buy exchanges that US WEST officials want to sell in Piute, Beaver, Iron and Kane counties.An agreement has also been reached for the sale of exchanges in two other small communities - Goshen in Utah County and Eureka in Juab County - to Central Utah Telephone Inc. That firm has its headquarters in Fairview, Sanpete County.
Exchanges that have been sold are in Loa and Bicknell in Wayne County and Panguitch, Hatch and Bryce Canyon in Garfield County. The agreement to transfer additional changes will involve Marysvale and Circleville, Piute County; Milford and Minersville, Beaver County; Enterprise, Washington County; and in Kanab.
A sale agreement for the first transactions between the large telephone utility and the smaller independent telephone company in Escalante was finalized in August 1992, followed by approval from the Utah Public Service Commission. The Federal Communications Commission authorized the transfer in December 1993.
Owners of South Central Utah and Central Utah will file with the UPSC and the FCC requests for ownership transfers of the other exchanges. The transactions must also be approved by the board of directors of the three utilities that are involved in sale or purchase of the telephone exchanges.
Southern Utah has some 6,000 customer lines in 16 exchanges over 7,200 square miles.
In previous hearings and announcements, US WEST officials have indicated they feel it is no longer financially feasible for the utility to continue service in some small, rural communities.
Mark W. Stromberg, US WEST vice president for Utah, stated in a letter to area business owners and community leaders that there has been increased competitive pressures in the telephone industry.
He said the Marysvale and Circleville exchanges are among some in Utah where customers could receive better service through an independent company.
It was announced that customers in the areas where exchanges have been sold will get a final billing from US WEST in March.