[1st-mile-nm] Qwest, ISP and PRC spent New Year's Eve together

[Carroll Cagle]

Customers Casualties in Phone Dispute 



 

Albuquerque Journal - front page

Thursday, January 01, 2009 

 <http://www.abqjournal.com/cgi-bin/email_reporter.pl?staff=yes> By Tamara
N. Shope
Journal Staff Writer
       Thousands of New Mexicans are without phone and Internet service this
week due to a payment dispute between Qwest and a local service provider. 
    Several 911 services, hospitals, banks and local authorities were
disconnected as well, leaving New Mexicans who rely on them in the lurch. 
    The New Mexico Public Service Commission was scrambling late New Year's
Eve to find even a short-term solution. 
    A federal judge will be hearing the two parties' arguments Jan. 13, so
the PRC issued an interim order late Wednesday: Qwest must immediately begin
the process of restoring service to "critical" customers, including local
governments, public safety, hospitals, banks and other such facilities.
Qwest warned that could take several days. 
    Qwest cut service to SkyWi Inc. and subsidiaries, including OneConnect
IP and ZiaNet, beginning at 3 a.m. Tuesday, said Qwest spokesman Mark
Molzen. SkyWi is the state's largest independent Internet service provider,
with about 13,000 customers. It is based in Albuquerque and operates in six
states. 
    The issue was brought before the PRC, which called an emergency meeting
Wednesday night because it deemed the matter a public safety and economic
crisis. 
    During the meeting, the PRC told Qwest that if it does not restore the
services by 8 a.m. today, it must show why it shouldn't be sanctioned by the
PRC. During the meeting, Qwest claimed it would take days, maybe even a
week, to restore all service. Qwest was ordered to report its progress to
the PRC by 10 a.m. Friday. 
    The PRC has no jurisdiction over Internet company SkyWi, which it
scolded for allowing its services to be disconnected without notifying its
customers. It ordered the company to hand control of its phone numbers to
the actual customers, so they could seek alternate providers if they so
desire. 
    Since the service was cut, the PRC has received calls from concerned
municipalities, businesspeople and residents, who said the outage is costing
them both safety and money. 
    The Roswell Medical Center was down, as were several 911 systems, said
PRC Chairman Jason Marks. One nonprofit called Marks to say it couldn't
process payroll; another claimed it would be forced into bankruptcy if the
matter wasn't resolved soon. 
    At issue, Qwest says, is about $1.7 million owed to the communications
giant. SkyWi has known of Qwest's intent to disconnect service for at least
10 days but did not notify its customers, nor did it contact Qwest to make
payment arrangements, Qwest said. 
    In a news release, SkyWi suggested the matter is much bigger than
nonpayment. 
    "We believe we are under attack by Qwest Communications," SkyWi
president Jack Leach said in the release. "SkyWi filed a lawsuit against
Qwest in federal court in New Mexico earlier in December regarding Qwest's
predatory anticompetitive and unfair trade practices."
    Qwest began demanding payment in November. According to copies of
documents Qwest sent to the Journal, it had issued bills totaling
$581,921.06 at that time. SkyWi paid about a third of that. Qwest served a
10-day notice that service would be disconnected. When SkyWi didn't respond
by Qwest's deadline, plans were put in motion to cut service. 
    "We asked for something in writing saying they would pay it by Friday,"
spokesman Molzen said. "We were going to extend the deadline. Had they
responded, given us assurance, then their service would still be on.
Unfortunately for their customers, they chose to ignore the request."
    Qwest claims the company now owes more than $1.7 million, but it would
extend services if SkyWi paid the $581,000 and continued to negotiate. 
    PRC Commissioner Sandy Jones said he believes both companies acted
improperly, because thousands of New Mexicans lost access to urgent and
emergency services. 
    "If anyone can go to bed and sleep very good tonight about the way they
treated these people, good luck," he said.

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