Qwest Announces De-regulation of Hi-cap Data Products – effective 4/15/09

Qwest Communications is sending a letter to customers stating that on April 15th 2009, certain products you have purchased from Qwest under tariff will be de-regulated. Below is a complete list of the Qwest products being de-regulated:

  • Asynchronous Transfer Mode (ATM)
  • Frame Relay (256k and higher)
  • Local Area Network Switching Service (LSS)
  • Synchronous Service Transport (SST)
  • Self-Healing Network Service (SHNS)
  • Ethernet over Sonet (on SST and SHNS)
  • GeoMax
  • Qwest Metro Optical Ethernet (QMOE)
  • HDTV-Net

De-regulation (forbearance) is allowed by the FCC because Qwest has shown that there are competitive services available from different vendors in the Colorado market and that the need to protect the client base from predatory practices from a sole source provider has passed.

What does this mean to you? First off, we believe that Qwest will be able to be more competitive for the services that you currently use in an open market. We believe that Qwest will look to what your total telco spend is with them and take that into account when they price a requirement for you.  Since the prices for these products will also be market driven, there may be some places in the state where the same service in less expensive.  That’s how other communications companies handle pricing in competitive markets. We expect Qwest to do a lot of the same things. The difference being that Qwest has an expansive network in Colorado and it is our commitment to you to work on developing the kind of pricing you need to run your business effectively.

What do you need to do now?  Qwest has in place an initial plan for supporting you through the transition from a tariffed based agreement for your service to an un-regulated environment. All of your current contracts with Qwest will remain in place. When an existing term agreement expires, it will continue on a month-to-month basis under the Qwest Corporation Interstate Private Line and Advanced Network Services (“IPLANS”) Agreement, and its applicable service exhibits, unless you sign a new contract with Qwest. Prior to making any changes to circuits on existing month to month or term agreements, installing any new services currently in process or placing new orders, you will be required to sign the new IPLANS contract and applicable pricing attachments and service exhibits.

ADVODA is well versed in the contract changes and would welcome the opportunity to work with you in executing the new contracts as well as developing, designing and deploying the network connectivity you need to run your business.

Please feel free to contact us at sales@advoda.com to discuss how this will impact your business and how we can work together to make this work for you.