Qwest to increase basic phone rates in Iowa
By Joe Gardyasz
Qwest Communications International Inc. will increase basic residential phone rates by 9 percent in Iowa, effective Nov. 1.
It’s the first time since telecommunication deregulation became effective in Iowa on July 1 that the Baby Bell will be able to raise rates without the approval of the Iowa Utilities Board (IUB). The Legislature in 2005 approved a three-year phase-in of deregulation, and the IUB issued a final decision on June 27. The IUB’s move assumes that Qwest now has sufficient competition in Iowa so that customers can choose another carrier if they feel the increase is too high.
In a notice sent to customers this week, Qwest announced that the monthly rate for a basic residential line will increase from $16.60 to $18.10, a 9 percent increase.
“We think it’s a pretty modest increase when you consider all the other goods and services that have gone up,” said Kara Neuverth, a Qwest spokeswoman. Though all residential and business customers in Iowa were sent the rate increase letter, Neuverth said that rates for basic business lines will not increase.
Also, the residential increase applies only to customers who have basic telephone service that is not bundled with Qwest DSL or DirecTV service, she said. She declined to say how many customers will be affected by the increase.
Qwest has raised basic telephone rates in each of the past three years in Iowa, according to an IUB report. Since 2005, Qwest residential rates have increased by $3.80 per month, and business rates have gone up by as much as $6.40 monthly.
The Denver-based company is also seeking a 14 percent rate increase in Colorado, which would boost the basic residential rate there to $16.99 a month. That increase is subject to approval by the Colorado Public Utilities Commission, and is expected to draw stiff opposition from groups representing customers on fixed incomes, the Rocky Mountain News reported.