PHOENIX — Qwest Inc. and US WEST Communications encountered more skepticism than support as Arizona regulators began reviewing the proposed merger of the Denver-based telecom companies.
Lawyers for Qwest and US WEST told a Corporation Commission hearing officer Thursday that the merger would encourage competition and improved service, but advocates for consumers and others voiced a wide array of concerns. "This merger is all about providing Qwest with local exchange customers. It is not about improving local service," said Christopher Kempley, a staff attorney for the commission. Hearing Officer Jerry Rudibaugh will make a recommendation to the three-member commission sometime after the hearing concludes, probably on Monday. A commission vote is expected this summer on the merger of Qwest, a long-distance and Internet carrier, and US WEST, which provides local telephone service in Arizona and 13 other states.
The commission staff and the state Residential Utility Consumer Office each
recommended various conditions they want attached to Arizona approval.
Proposed conditions include guarantees of service improvements and mandatory investments in equipment. Also: prohibiting corporate dividends from leaving the state if service improvements don't take place and providing new wholesale discounts to foster competition.
Other critics include US WEST retirees who voiced concerns about pension benefits. "US WEST has turned its back on them and Qwest is refusing to embrace them," said Raymond Heyman, a lawyer for the Telephone Retirees Association of Arizona.
Colorado and Iowa have approved the merger. It awaits action in five other states besides Arizona: Minnesota, Montana, Utah, Washington and Wyoming.