Touch America, Inc. v. Qwest Communications International, et al, File No. EB-02-MD-003
Dec 11, 2003OUTCOME: Settlement Agreement
Touch America, the national fiber-optic network and high-speed broadband products and services subsidiary of the Montana Power Company (NYSE:MTP), filed a complaint with the Federal Communications Comm ... ission (FCC), asking the federal agency to stop Qwest Communications from selling long-distance services in its 14-state regulated monopoly region in violation of the Telecommunications Act of 1996. Under Section 271 of the Telecom Act, a local phone company, like Qwest, is barred from selling long-distance voice or data telecommunications services across its monopoly region (in-region) until it has satisfactorily opened its local utility system to competition and has received approval from the FCC. FCC regulations permit regional telecom utilities, like Qwest, to sell network facilities -- hardware such as poles, wires, fiber-optic cable, and the optical equipment used to transmit telecommunications signals that provide the long-distance services. But a company like Qwest cannot sell long-distance services until it receives the necessary approvals. The complaint filed with the FCC lists seven customers and 14 circuits as examples of Qwest providing Capacity IRUs in-region. "We hope other telecommunications carriers will take a good look at Touch America's complaint," Freeman said. "We're sure they'll recognize Qwest's practice for what it is and identify other examples of Qwest marketing and selling in-region long-distance services, whether Capacity IRUs, Q Wave or otherwise, that we believe are in violation of Section 271 of the Telecommunications Act," he continued. On June 30, 2000, Touch America acquired for $200 million Qwest Communications' regional long-distance business in order for Qwest to comply with federal laws and regulations associated with its merger with U S WEST. In its FCC filing, Touch America claims that Qwest also violates Section 271 by using Capacity IRU's to reclaim customer accounts properly divested to Touch America.
