PSC evaluates CenturyLink, Qwest merger

The Montana Public Service Commission continues to evaluate a possible merger between CenturyLink and Qwest.

The deal could bring broadband service to West Glacier by the end of 2011.

The PSC held a hearing Nov. 22 in Helena on the proposal. Representatives from both companies told commissioners that the deal will benefit consumers.

Jeremy Ferkin, vice president and general manager of CenturyLink’s Rocky Mountain market, said the merger would create a stronger company with decisions based locally.

“The people living in those communities will be making decisions on where to deploy broadband, where to deploy services, how to serve those customers and work with those customers,” Ferkin said.

The PSC is currently considering the acquisition of Qwest by CenturyLink. The deal is expected to go through in early 2011.

At a meeting in West Glacier in September, Ferkin said if the merger goes as planned broadband could be available to West Glacier next year.

Ferkin previously pledged to hold a public meeting in West Glacier within 30 days of the deal’s completion to layout the company’s plans.

Earlier this month, both companies agreed to conditions endorsed by the Montana Consumer Counsel that requires the two companies to file information by no later than 2014 on their cost of service in Montana, so the PSC can see whether rates still match costs.

Qwest and CenturyLink are the two largest land-line telephone companies in Montana.

At the Nov. 22 meeting Commissioner Ken Toole pointed to the $200 million in bonuses going to the executives of both companies.

“How is this amount of money any benefit (to consumers),” Toole asked.

Ferkin said he couldn’t speak specifically on the bonuses, but did point out that the merger would improve service.

“This will have a huge impact on broadband for customers,” Ferkin said. “I 100 percent believe this is in the public’s best interest.”

During the public hearing in West Glacier, several residents and business owners said having broadband service is important.

Sally Thompson, an owner of Glacier Raft Company, advocated for the merger at the Sept. 29 meeting.

“It’s like pulling your hair out trying to run a business — it’s really frustrating — without high-speed Internet,” she said.

The commission expects to make a decision on the merger by the end of the year.