AG report slammed Qwest tactics

SANTA FE (KRQE) - A state attorney general's report warned that potential business abuses could produce trouble like the Qwest-SkyWi fight that left thousands of New Mexicans without phone and Internet service.

The AG's 41-page filing centered on large and powerful phone and communications companies was filed with the Public Regulation Commission seven months ago.

It warned of "unfair billing and business practices" on the part of the companies called "incumbent local exchange carriers." Qwest Communications is identified as one of them operating as a "barely regulated monopoly, a situation that invites abuse."

"I filed it May 16, an expert's report detailing potentially predatory and anti-competitive behavior," Assistant Attorney General Brian Harris said.

Harris brought up the report at Tuesday's PRC meeting on the ongoing dispute between Qwest and Internet service provider SkyWi. The PRC on December 31 ordered Qwest to restore all the SkyWi connections.

"The report is full of anonymous hearsay, innuendo, and lacks specifics," Qwest spokesman Mark Molzen told KRQE News 13 late Wednesday. "Qwest puts a premium on making sure we're operating our business properly."

The PRC has never found that Qwest violated any regulation in connection with ISP companies like SkyWi, he added.

Qwest provides the technical network that allows smaller communications companies like SkyWi Inc. to operate. SkyWi buys Internet connections wholesale from Qwest and then retails services include Web phone connections to businesses, individuals and government agencies.

On Dec. 29 Qwest pulled the plug on SkyWi over $1.7 million Qwest says it is owed. Almost 20,000 SkyWi phone and internet customers were affected here in New Mexico.

"This commission has seen evidence from the attorney general's office for the state that shows Qwest does engage in anti-competitive conduct," SkyWi attorney Andrew Sanchez said during the hearing.

SkyWi has sued Qwest alleging the phone giant is trying to put it out of business. Qwest has countered saying the billing is legitimate and that the lawsuit is an attempt to avoid paying the debt.

Before the PRC Qwest again denied being anti-competitive.

"This is a serious issue," Qwest attorney Tim Goodwin told the PRC. "Qwest takes it seriously."

The AG's filing accuses Qwest of a list of unfair practices including billing errors, improper threats to shut down service to companies like SkyWi, and sending monthly bills to those companies that are more than 5,000 pages long.

A federal judge will decide what happens next in the dispute between Qwest and SkyWi. However statewide regulatory issues fall under the PRC.

PRC Chairman Sandy Jones told KRQE News 13 that commissioners will consider the AG's filing within the next several weeks before deciding whether to launch a formal investigation.