XO lays it on Qwest as dereg battle continues in West

As Qwest and AT&T continue to collect FCC approval of Bell forbearance petitions, XO Communications has taken the offensive, releasing a scathing report claiming deregulating Qwest will cost consumers in four major markets: Denver, Minneapolis, Phoenix, and Seattle. "If Qwest wins approval of its forbearance petitions, it will do what monopolies always do," warns XO vice president Heather Gold, "exert massive market power to squeeze out competition and raise rates."

The report predicts an average annual service rate hike of $115 per household, a pretty stiff shot for consumers in this economy. And, say critics, the slow advance of the telcos against smaller CLECs could upset an already unsteady competitive balance.

For more:
- Read the ars technica story

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