Minn. PUC administrative law judge was scheduled to open hearings...

Minn. PUC administrative law judge was scheduled to open hearings today (April 30) on allegations Qwest made secret “sweetheart deals” with certain CLECs in return for their dropping their opposition to Qwest regulatory initiatives including long distance entry. Complaint (Case P421/C-02- 197) filed by Minn. Dept. of Commerce, acting as consumer advocate, charged that Qwest had failed to file deals with at least 3 different Minn. CLECs in which they received special discounts, billing arrangements or service priority in return for their dropping opposition to Qwest-U S West merger and Qwest interLATA long distance entry. Dept. accused Qwest of using deals to silence critics of its merger and its long distance entry, and its failure to file deals with PUC meant other CLECs couldn’t opt into those terms; Dept. sought penalties up to $200 million. Qwest denied wrongdoing, saying agreements weren’t subject to disclosure because they were confidential settlements of disputes over rates and terms in their interconnection agreements. Company also said provisions for CLECs to drop their opposition to its regulatory petitions weren’t unusual, but were meant to ensure that CLECs didn’t try to re-litigate disputes under guise of opposing Qwest initiatives. Some CLECs have raised issue of allegedly preferential unfiled Qwest deals with selected CLECs in Ariz., Colo., N.M., Ore., Utah. Those state commissions are investigating. Qwest said it had asked FCC to determine whether it had violated Telecom Act in preference to undergoing state-by-state litigation, but FCC hasn’t said whether it will act.