Search News
For the Media
For media inquiries, call CWA Communications at 202-434-1168 or email comms@cwa-union.org. To read about CWA Members, Leadership or Industries, visit our About page.
Bahr Urges Senate Support for Telecom Industry
CWA President Morton Bahr recently gave members of the Senate Democratic Caucus a somber overview of the state of the telecommunications industry and called for action to improve high-speed Internet access to help stop the sector’s free fall.
The briefing was co-chaired by Senate Majority Leader Tom Daschle of South Dakota and Massachusetts Sen. John Kerry. About 30 other Democratic senators attended, along with several AFL-CIO officers.
Bahr reminded senators that the telecom industry constitutes 15 to 20 percent of the national economy, touching every business, home and individual.
He stressed that passage of the Breaux bill to help increase high-speed Internet access and capacity was critical to revitalize the industry, create jobs and bring the benefits of high-speed data services, such as tele-medicine and distance learning, to tens of millions of Americans.
In his informal “Telecom Economics 101” presentation, Bahr said that competition in the telecom sector has been driven by government actions without a careful assessment of the consequences for the industry.
Bahr said the breakup of the Bell system in 1984 changed economic and social policy for our nation but received little oversight by those elected to act in the nation’s best interest.
Similarly, he said the current direction for competition at the local level is producing unwanted results.
Competition in long distance, in place for more than 25 years, has driven prices well below the level that would produce profits for any of the companies, Bahr said.
The Telecommunications Act of 1996 directed further competition at the local level, but the result has been a loss of one million lines a quarter this year. Last year was the first year in history when there were fewer access lines than the previous year.
Bahr said some 320 competitive local exchange carriers are now out of business, not surprising in an industry where a 15-20 percent market share is necessary to remain viable.
Divestiture has caused massive job losses in telecom manufacturing. Pointing to Western Electric (now Lucent Technologies) as an example, Bahr said the company’s 180,000 jobs in 1984 has dwindled to just 800 today as more and more work is shifted overseas.
Bahr also reminded senators that their rightful concern about retiree health care costs at the nation’s steel companies will need to be extended to Lucent’s 174,000 retirees.
The briefing was co-chaired by Senate Majority Leader Tom Daschle of South Dakota and Massachusetts Sen. John Kerry. About 30 other Democratic senators attended, along with several AFL-CIO officers.
Bahr reminded senators that the telecom industry constitutes 15 to 20 percent of the national economy, touching every business, home and individual.
He stressed that passage of the Breaux bill to help increase high-speed Internet access and capacity was critical to revitalize the industry, create jobs and bring the benefits of high-speed data services, such as tele-medicine and distance learning, to tens of millions of Americans.
In his informal “Telecom Economics 101” presentation, Bahr said that competition in the telecom sector has been driven by government actions without a careful assessment of the consequences for the industry.
Bahr said the breakup of the Bell system in 1984 changed economic and social policy for our nation but received little oversight by those elected to act in the nation’s best interest.
Similarly, he said the current direction for competition at the local level is producing unwanted results.
Competition in long distance, in place for more than 25 years, has driven prices well below the level that would produce profits for any of the companies, Bahr said.
The Telecommunications Act of 1996 directed further competition at the local level, but the result has been a loss of one million lines a quarter this year. Last year was the first year in history when there were fewer access lines than the previous year.
Bahr said some 320 competitive local exchange carriers are now out of business, not surprising in an industry where a 15-20 percent market share is necessary to remain viable.
Divestiture has caused massive job losses in telecom manufacturing. Pointing to Western Electric (now Lucent Technologies) as an example, Bahr said the company’s 180,000 jobs in 1984 has dwindled to just 800 today as more and more work is shifted overseas.
Bahr also reminded senators that their rightful concern about retiree health care costs at the nation’s steel companies will need to be extended to Lucent’s 174,000 retirees.