Qwest is raising its rates on certain services.
In a letter sent to customers with their most recent bill, the Denver-based telecommunications company announced rate increases for certain features of residential and business phone service, such as call waiting and caller ID.
The changes are set to take effect July 1.
Company spokeswoman Margaret Fogarty said in a statement that “changing market conditions require occasional price adjustments in order to remain competitive.”
She said fewer than 20 percent of Qwest customers will be affected by the new rates.
“Qwest has not raised residential rates in Colorado in more than two years, and we will continue to adjust our pricing in accordance with our costs and the marketplace,” she said.
Monthly call-waiting rates will increase from $6 to $6.50. Caller ID will rise from $7.50 to $8.50 a month.
About 25 a la carte residential services will see rate increases, along with 19 business services. The changes will not affect services and features in bundled packages, such as Qwest Choice Home, the company said.
It’s unclear when the rate changes will be realized on Qwest’s balance sheet.
Speaking at an investors conference in New York on Monday, Qwest chairman and chief executive Ed Mueller said the economy, competition and customers who replace their home phones with wireless devices have hurt sales and would continue to dampen annual forecasts.
“There’s a lot of head wind, as you know, from the housing downturn and the financial woes of our country right now,” Mueller said.
In February, Mueller’s forecast called for sales near or slightly below its $13.8 billion in 2007 revenue. Shares of Qwest fell 7 cents Tuesday — or 1.55 percent — to close at $4.45.
Bloomberg News contributed to this report.
Kimberly S. Johnson: 303-954-1088 or kjohnson@denverpost.com
