Minnesota files 'secret deals' complaint against Qwest - Portland Business Journal:

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Qwest denied any wrongdoing and said the dealse actually helpedencourage competition. The Orego n Public Utility Commission has requested that the state of Minnesota send it information on the said Oregon PUC spokesmanBob Valdez, adding that Oregonh may request records from Qwest. "Qwesrt cannot discriminate among competitors," he added. The Minnesota Departmentt of Commerce filed the complaint with the stater PublicUtilities Commission, which could penalize Qwest with fineds as high as $202 million if it agrees that the companyu acted illegally.
As the largest incumbenf local exchange carrier in Qwest is required by federa l law to allow competitive phone companies to connectf to its network based on publiclyknown standards. The idea is that this accesds will create a level playing field among thevarious competitors. But the Commercew Department charged that Qwest made secret deal withseveral rivals, possibly giving them an edge. The departmen did not disclose other participants in the deals or detailws ofthe agreements, beyond saying they includef issues such as compensation and access to networl elements.
Qwest has an obligation to provide wholesale servicw ona non-discriminatory basis, said Anthony Mendoza, deputy commercse commissioner. "To the extent they'vs been playing favorites, that violates the lettetr and spirit ofthe law." The commissiob wants to force Qwest to discloss the details of the secret arrangements. Mendoza said that the complainft was the result ofa months-long investigation by the department, which beganb when the agency noticed a change in behavior on the part of some of Qwest'xs competitors. Companies that once took an active role inregulatory issues--often loudly criticizing Qwest for its policies, suddenly becamre much quieter, he said.
He declined to say whethed there was evidence of similar deals elsewherein Qwest'sd 14-state territory. The complaint comes at an inconvenienr timefor Qwest, which is preparin to ask the Federal Communicationas Commission to allow it to sell long-distancre service in its home states. It is currently barred from doing so untipl it proves that its local markets are open to Qwest officials said that they had not reviewesdthe complaint, but asserted that the company'ds practice of negotiating agreements to competitors was pro-competitive. "We'vd stated time and time again that our both businessand consumers, will have choices," said spokesman Bryce Hallowell.