Wednesday, June 23, 2010

FCC Denies Qwest Request to Change Pro-competition Policy Status Quo in Phoenix

The FCC denied a request from Qwest Corp. to change the current pro-competition policy status quo in the Phoenix, Arizona market. The FCC denied similar petitions in 2007 and 2008.

In reviewing Qwest's petition, the FCC said it applied a data-driven "market power" analysis to determine whether Qwest had shown that the competition policies governing traditional telephone services in Phoenix were no longer necessary. While the Commission found that Qwest failed to demonstrate that it no longer had market power for the relevant services in Phoenix, the agency acknowledged the significant growth of wireless and residential cable voice services. Moving forward, the FCC indicated that stronger evidence of lack of market power in future proceedings could result in a different outcome.

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