Qwest is suing UTOPIA – Company says Utah agency sells services below market prices

Plans for a multicity telecommunications network have long drawn fire from competing communications companies. Now, one of them has taken the fight to court.

Qwest filed a federal lawsuit Wednesday afternoon against UTOPIA — the Utah Telecommunications Open Infrastructure Agency — accusing the agency of creating unfair competition that allows UTOPIA contractors to sell communications services at below market prices.

UTOPIA has been working to build and operate a network giving high-speed voice, video and data access to residents and businesses in member cities. Of the 14 member cities, 11 have pledged financial support through city bonds.

But Qwest’s suit says the agency is taking advantage of its status as a governmental agency — which is exempt from sales and property taxes — to allow its contractors, including AT&T, to provide telecommunications services at below-market prices while Qwest has no such option.

By Doug Smeath
Deseret Morning News

Full Story: http://deseretnews.com/dn/view/0,1249,600138445,00.html