Reports are that embattled Baby Bell Qwest Communications International Inc.
is talking settlement with the federal Securities and Exchange Commission over
an ongoing investigation into alleged overinflated revenues stemming from
fiber-optic-capacity swaps with other carriers.
The Wall Street Journal reported Friday that federal investigators are
making the case that the swaps did not constitute reasonable business
Journal sources also said any settlement that may result will likely
include a "no-contest" statement from Qwest, neither confirming nor denying any
The SEC investigation began last April -- one of a slew of probes into
carrier-capacity swaps that artificially inflated revenue tallies.
Since then, Qwest has agreed to restate some $2.2 billion in revenues
stemming from the optical-capacity swaps made in 2000 and