Merger murmurs.

• Author: Kerven, Anne
• Position: Merger between US West Inc. and Qwest Communications International Inc.

How will the Qwest/US West merger affect rural Colorado?

So far all is speculation - or silence.

Q west recently announced plans to expand broadband technology to 25 metropolitan markets around the nation, but silence has shrouded plans to bring similar services to rural regions.

That helps explain why most rural Colorado telecom leaders greeted news of the $35 billion merger of US West Inc. and Qwest Communications International Inc. with wariness.

"US West doesn't service the majority of rural Colorado anyway," said Mike Borrego, the State of Colorado's telecom manager. But, "US West says the merger brings more capital. The question is, where will those investments be made?"

Industry observers say it's too early to tell. The merger might not be complete for another year or so, and, "I don't think they know yet," Borrego said. "It's too early in the process."

"The reality is this is not expected to close until mid-2000," said Qwest spokesperson Christy Weiner. "A lot should happen between now and then."

But rural leaders are restless. The merger could widen the "digital divide," or the disparity between those who have access to technological advances and those who don't. Some fear antitrust regulation could prevent Qwest from continuing its long-distance services to rural Internet service providers.

Ken Swinehart, president of Alamosa-based Amigo.net, said his ISP uses Qwest's "long-haul" or long-distance services. Presently, Qwest's connection is direct and cost-effective. Without it, Swinehart will pay as much as three times more for less-direct links.

And, in the event of a merger, Swinehart might have to go without it. A local provider, US West can't cross certain boundaries.

"Qwest may have to divest itself of its long-distance service," Borrego said. "A provision (in the '96 Telecom Act) requires that they take definite steps to show they have opened the local market to competition. They have to prove they've done that to the FCC. So far, none of the Bell operating companies have made it to that point. So if the merger can show that now (the two companies) have opened the network and competition, then they won't have to give up long-distance services."

US West has sought state approval, the first step in the process, said Kevin Smith, US West Colorado vice president. Barring approvals, Qwest would sell its long-distance services. But it's a viable business, he noted. Someone will continue those services.

Meantime, the state's...