By Zack Stovall
Arkansas News Bureau

LITTLE ROCK — Windstream Communications Inc., a spinoff Alltel Corp., filed a federal lawsuit Friday to settle a long-running billing dispute with the former Little Rock-based telecom giant bought by Verizon Wireless.

Since Windstream’s $9 billion spinoff in 2006, Windstream and Alltel have allowed telecommunication traffic to travel over their independent networks, invoicing each other for those services.

The complaint, filed in the U.S. District Court, contends Alltel erroneously billed Windstream “tens of millions of dollars” for transmissions by a third party, such as Sprint or CenturyTel.

Windstream paid the invoices under dispute but filed suit after Alltel, while acknowledging the billing error, did not correct its system and repeatedly refused demands for complete data and information regarding the invoices, according to the complaint.

The suit contends Alltel “engaged and continues to engage in unconscionable, false or deceptive acts or practices …”

Windstream spokesman David Avery said the matter has long been a dispute between the companies.

“Windstream was charged for calls on the Alltel network that were made by non-Windstream customers,” Avery said. “We’re simply asking that this long-standing issue regarding calls made by third parties be resolved.”

The lawsuit seeks unspecific damages of not less than $7 million to recover unlawful charges and recovery for unlawful practices, as well as attorneys fees and a permanent injunction barring Alltel from billing Windstream for noncompensable traffic.

Verizon spokesman Scott Morris said Friday the company was aware of the complaint.

“We received the complaint today and are in the process of reviewing it,” Morris said.