Opposition Mounting To Verizon-Frontier Deal

CWA members in West Virginia and other states are keeping up the fight against Verizon’s plan to sell 4.8 million landlines in 14 states to Frontier Communications. A broad coalition of union members, consumers, public interest groups and community leaders are flooding elected officials and other decision-makers with thousands of letters and phone calls.

The main battleground is in West Virginia, where the deal could have a devastating impact on quality telecommunications and high-speed broadband build out. Gov. Joe Manchin has received more than 2,000 letters opposing the deal and state legislators received more than 3,200.

Currently, 75 state lawmakers have signed on to CWA’s “Reject the Verizon/Frontier Deal” petition that is available to sign online at the union’s campaign website www.bad4wv.com. CWA also is urging West Virginians to call (877) 55-NO-WAY (1-877-556-6929) and leave a message expressing their views on the deal.

Teams of CWA members across the state are continuing to meet with lawmakers and have held more than a dozen meetings with county commissions on the Verizon-Frontier sale. At one hearing, first responders from Vermont testified how 911 systems failed in Vermont and Maine after Verizon sold its landlines to the much smaller FairPoint Communications in a similar deal in 2008. “As first responders in Vermont we were outraged,” firefighter Matt Vinci said.

“We can have a big impact on whether this deal goes through as proposed. Union members need to continue the phone calls and letters to politicians,” said CWA District 2 Vice President Ron Collins. “This deal could seriously impact the jobs of hundreds of CWA members in West Virginia and a devastating impact on affected communities.”

Public opposition continues to grow as West Virginians learn more about the effect of the sale on local communities currently being served by Verizon. In February, CWA filed a brief with the Public Service Commission that shows that the deal is financially and technically unsound. Frontier’s own filings have “produced no evidence that its proposals would be sufficient to repair, maintain or upgrade the copper network,” CWA said, adding that the company’s most recent financial reports show that it lacks the resources necessary to take on Verizon’s operations.

Frontier has not obtained the necessary financing to take on $3 billion in additional debt that would be part of the transaction, but Verizon and Frontier have asked the state PSC to approve the deal before financing is approved.

The staff of both the state’s Public Service Commission and its Consumer Advocate Division have recommended that commissioners reject the deal as proposed. The commission is now deliberating whether to approve the deal.

Verizon picked Frontier as a deal partner so it could qualify for $600 million in tax-free profits from the transaction under a tax loophole called the Reserve Morris Trust.

Photo Captions: Mobilization and lobbying are building support for CWA's campaign against the proposed Verizon-Frontier deal. At recent rally, West Virginia Gov. Joe Manchin, right, with Dist. 2 Vice President Ron Collins, pledged to oppose the deal if it hurts jobs and quality service.