Skip to main contentScrewed.
It's not a pretty word, nor is it one that the Nose's mother lets him use in her presence.
But is there any other way to describe how Qwest has treated the Nose and other Portlanders? With all due respect for the notion that there are two sides to every story, isn't it obvious that there are not two sides to this story? That Qwest is taking us for fools. That, to paraphrase the bumper sticker, if we are not outraged we must not be paying attention?
The Nose is not talking about Qwest's scheme to stop paying local governments the franchise fee that you and I send to Qwest's Colorado headquarters each month. (Last week, some of the more brilliant minds in the newsroom here suggested we encourage readers to withhold the portion of their phone bills that represents the franchise fee--an honorable bit of civil disobedience if the Nose ever saw one. The clip-and-send form is still available at wweek.com.)
Instead, the Nose is talking about the variety of other ways in which the company that offers local phone service is operating with the sort of ethical behavior that one might find in Indonesia.
Such as Qwest's continued substandard service--service that prompted the Oregon Public Utility Commission to fine it $255,000 in 2001.
Such as Qwest's ongoing ability to "slam and cram" consumers with services they didn't ask for (have you checked your bill lately?).
Such as accounting principles so creative they caught the attention of the U.S. Securities and Exchange Commission.
Such as providing personal information about its customers to other companies.
Such as charging cell-phone users roaming fees for calls made within the service area--the subject of a class-action lawsuit filed by Portland lawyer Jennifer Palmquist.
But the Nose really likes this one: It now appears that Qwest sold some assets to Enron (you heard that right) that were largely worthless just so the phone company could report the income and improve its revenue picture on paper. What did Enron get in return? It sold some assets to Qwest so that it could do the same thing. Last September, the two companies exchanged checks for $112 million. Can you say "voodoo accounting"?
And then there's the final indignity of the compensation of one Joe Nacchio, chief executive officer of Qwest, who has taken home more than $300 million for running the company.
Nacchio must be feeling some of the heat from angry consumers and stockholders (Qwest stock has tumbled from $40 a share to $6). How does the Nose know? The annual meeting is not being held in Colorado or any of the other 13 states in which Qwest provides residential service. Instead, the June 4 meeting is booked for Dublin, Ohio. (If you don't want shell out the $263 for a round-trip ticket to Columbus, you can call Joe for free at 1-877-440-8959, or send a note to his personal email account: joseph@tac-denver.com.)
Of course, Qwest isn't done with us yet. In August, each state in Qwest's service area will send a letter to the Federal Communications Commission supporting or opposing Qwest's entry into the long-distance business (it's currently restricted to local and cell-phone service). It would seem that Qwest's chance of getting backing from Oregon or any other state would be remote. But Qwest argues that without a move into long distance, the company will bleed red ink. Shareholders will be angry. Service will suffer. And consumers will get...screwed.
Sorry, Mom.
WWeek 2015