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Technology Stocks : Qwest Communications (Q) (formerly QWST)
Q 89.89+0.2%3:59 PM EST

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To: MangoBoy who wrote (1465)6/9/1998 10:44:00 PM
From: David Lawrence  Read Replies (1) of 6846
 
Here is another version:


CHICAGO (AP) - A federal judge ruled Tuesday that Ameritech can
continue to solicit long-distance customers for Qwest
Communications pending a final decision on the legality of the
arrangement.
The ruling by U.S. District Judge Blanche M. Manning marks the
latest turn in a struggle between local phone companies and big
long-distance carriers like AT&T and MCI Communications Corp. for
control of the $80 billion U.S. long-distance business.
Under the pact, Denver-based Qwest will pay Ameritech an
undisclosed recruiting fee for each client in its local phone
region that chooses Qwest for long-distance service.
Chicago-based Ameritech has said it would market Qwest's
long-distance service as part of a package with local phone
service.
AT&T, MCI and five other parties have filed a lawsuit contending
the arrangement violates a provision of the 1996 telecommunications
law that bars a Baby Bell from providing long-distance service to
its own customers.
They also argue that by teaming up with Denver-based Qwest,
Ameritech is violating another provision of the law barring a Baby
Bell from discriminating in favor of one long-distance company.
Last week, a federal court in Seattle blocked a similar
arrangement between Qwest and U S West. That court did not rule on
the merits of the alliance but held that it should be temporarily
suspended until the Federal Communications Commission decides
whether the arrangement is legal.
But Manning refused a request by AT&T to issue a preliminary
injunction against Ameritech and Qwest and said he would seek an
opinion on the case from the FCC before ruling on the legality of
the arrangement.
''This confirms what we have said all along, that this
relationship is good for customers and passes legal muster,'' said
Ameritech spokesman Dave Pacholczyk. ''As far as we are concerned,
it's full speed ahead.''
Qwest President and Chief Executive Joseph Nacchio said in a
statement that the decision ''supports an open, competitive market
place, translating into value for customers.''
AT&T did not immediately respond to a telephone message left at
it's Chicago offices after business hours Tuesday. There was no
answer at MCI's Chicago office.
Joining AT&T and MCI in the lawsuit are the Association for
Local Telecommunications Services, NEXTLINK Communications,
McLeodUSA Telecommunications, Focal Communications Corp. and KMC
Telecom II Inc.
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