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Qwest, MCI Reach Access-Fee Deal: Page 2 of 2

Qwest was the only RBOC that agreed to mediate on the issue when negotiations began in April. The contract was mediated by Cheryl Parrino, former chairman of the Wisconsin Public Service Commission. Qwest's CEO and chairman Richard Notebaert thanked Powell for his "continued support and encouragement," but added that the agreement was "forged without any regulatory assistance."

Powell has been urging the RBOCs and the independents to attempt to work out deals among themselves before a June 15 deadline, when the Appeals Court decision may be appealed.

SBC has proposed a charge of $22 a line, but that has been rejected as too high by the independents. AT&T has complained that it is "troubled by the fact the Bells continue to negotiate from the position that consumers will have to pay more for local phone service."

In a statement on the issue Tuesday, BellSouth urged the FCC to establish a framework for the industry to follow after the demise of the old access-fee rules. A BellSouth spokesman said: "Good faith negotiations resulting in commercial agreements are the best remedy to this situation. We will continue to talk with our wholesale customers who want to talk with us in hope of reaching individually negotiated agreements."