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Qwest freed from cap on broadband fees

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Just as the Federal Communications Commission (FCC) granted Qwest Communications International Inc. the right to set its own rates for access to its high-speed broadband network, the company announced it will expand its fiber-optic technology in 20 markets by year’s end.

The Denver Business Journal reported that the FCC’s decision to allow Qwest to decide what to charge companies that need to use its lines to complete ethernet, video, optical network or similar high-capacity broadband systems follows similar deregulation decisions granted to AT&T Inc. and Verizon.

FCC Chairman Kevin Martin said the deregulation would allow Qwest to expand its broadband services and fiber-optic networks “without overly burdensome regulations.” The FCC’s two Democratic commissioners opposed the decision, saying that it amounts to piece-by-piece deregulation and is not a comprehensive look at market conditions for the services.

Smaller, business-to-business broadband network providers fear that a lack of regulation could mean that Qwest will be able to charge prohibitive prices to competing telecommunications companies, which would make those companies’ services more expensive for their customers.

Qwest said in a press release that it offers the most advanced fiber-optic Internet services to more than 1 million potential customers in selected areas of 18 markets, including Des Moines, and will expand its fiber-optic technology to 1.8 million potential residential and small-business customers by year’s end.

The FCC’s decision did not remove the caps set on what Qwest can charge for carrying competitors’ T1 or T3 service lines.