Minn. PUC told Qwest it must be more creative in crafting propose...

Minn. PUC told Qwest it must be more creative in crafting proposed remedy for its violations of state and federal law in failing to file certain preferential agreements it made with CLECs. PUC said Qwest’s current proposed remedy plan wasn’t satisfactory because it focused too much on retail operations. It gave Qwest until Dec. 12 to come up with better plan. But there also was good news for Qwest. PUC ruled out structural separation, pulling Qwest’s intrastate certificate and draconian proposal for $175 million fine as penalty options. Qwest had offered to give CLECs 10% discount on future wholesale purchases, create 100 new Minn. jobs, offer senior citizens free privacy protection services for 2 years and extend DSL service to 6 new communities. Minn. Dept of Commerce, which filed initial complaint about unfiled agreements, objected, saying offenses affected wholesale markets so remedy plan must do more to ensure against future anticompetitive wholesale behavior. Minn. Attorney Gen. wanted Qwest’s plan modified to give elderly customers free privacy products for 3 years and to make 10% CLEC credit retroactive to Jan. 2000. In informing Qwest its plan needed more work, PUC told carrier to consider AG’s proposal and to find way to extend to all CLECs those preferential terms given to CLECs that were parties to unfiled agreements. PUC also told Qwest that if its new plan wasn’t satisfactory, it was prepared to fine Qwest up to $75 million. Once Qwest files new remedy plan, parties will have 30 days to file comments. Final decision could come in Feb.