Dept. of Justice told FCC Wed. it saw variety of problems with Qw...

itself that the concerns expressed in this evaluation have been resolved.” This is 2nd petition filed by Qwest for entry into long distance business. First, also pending FCC action, involves 5 states (CD June 14 p1). DoJ’s concerns were directed mainly at operations support system (OSS) and unbundled network element (UNE) pricing. Dept. said Qwest’s application “demonstrates that it has succeeded in opening its local markets [in those 4 states] in many respects.” However, DoJ said, “Qwest’s assertions that it provides adequate manual order processing and electronically auditable billing for UNE-platform service remain questionable.” Justice said “it’s also unclear whether the UNE rates in Montana and Wyoming, which were developed recently, are appropriately cost-based.” DoJ noted it had voiced same concerns in evaluation of Qwest’s first application, which is due for FCC action by Sept. 11. Asst. Attorney Gen. Charles James said it was clear that competitors had made progress in entering business markets in 4 states under review. “Questions remain, however, about aspects of Qwest’s OSS and pricing that merit further examination by the FCC,” James said. Deadline for FCC action on this petition is Oct. 10. Qwest Senior Vp Gary Lytle said company was pleased with DoJ'S “conditional” approval of its Sec. 271 application. “We strongly believe we are successfully addressing with the FCC the few remaining issues identified by the DoJ,” he said. “This evaluation, along with the positive recommendations from public utility commissions in all 4 of these states, will help move our application through the process at the FCC.”