Qwest got good news from Ariz. but bad news from Ida. in its effo...

OSS functions that were found wanting in Dec. preliminary report and now had passed. Qwest said final favorable OSS report on Ariz. meant it should be able to seek FCC long distance approval for Ariz. in late May. Ariz. test was separate from 13-state regional OSS test conducted by KPMG Consulting. On that regional test, whose preliminary results were released April 19, CLEC AT&T said Qwest’s claims that test results showed it passed with flying colors might be overstated. AT&T said KPMG identified several issues where “the scores Qwest kept for itself are suspect.” AT&T said that raised question whether Qwest actually was doing what it was saying it did. AT&T said data integrity and other questionable areas in KPMG draft report would be reviewed over coming weeks and final report could contain “significant alterations” from draft findings: “Anyone who claims or suggests that the draft report is the end of the process is engaging in significant and irresponsible exaggeration.” Qwest’s bad news came in Ida., where PUC concluded its long distance entry wasn’t in public interest because its unbundled network element (UNE) rates weren’t cost-based. PUC said current UNE rates in state were set in arbitrated 1999 interconnection agreement between AT&T and Qwest, but there was no evidence showing those prices satisfied FCC requirement that UNE rates be based on total element long run incremental cost (TELRIC) or that UNEs in contract conform to list of UNEs that must be offered to CLECs. PUC said there was pending docket to review Qwest UNE rates and terms in Idaho but proceeding was nowhere near completion.