CWA Applauds FCC for Requiring Investment by America Movil in Purchase of Puerto Rico Telephone Comp

Contact: Jeff Miller or Candice Johnson, CWA Communications, 202-434-1168, jmiller@cwa-union.org and cjohnson@cwa-union.org

Washington, D.C. – In its order approving America Movil's purchase of the Puerto Rico Telephone Co., from Verizon Communications, the Federal Communications Commission called for important commitments and assurances from America Movil to ensure that the transfer serves the public interest. The Communications Workers of America applauds the FCC's action. 

To win merger approval, America Movil committed to invest $1 billion in communications and information services in Puerto Rico over the next five years. "CWA views this as a promise to the people of Puerto Rico, and will be watching that America Movil meets this commitment. We expect that the FCC and the Puerto Rico Regulatory Authority will be vigilant in monitoring compliance," said CWA President Larry Cohen.

This Puerto Rico Telephone sale is the first time that a foreign company will own wireline telecommunications facilities on U.S. soil, and the FCC indicated that it needed to set a high bar to ensure that the transfer serves the public interest. America Movil is a Mexican company owned by Carlos Slim Helu, providing telecommunications services to 14 countries.

Verizon bought Puerto Rico Telephone Company in 2000 but made negligible investment in the network, and under its ownership, telephone penetration declined from 74 to 61 percent. The infrastructure is in such poor condition that most lines are not DSL capable, denying customers access to changing technologies.

Verizon's sale of its Puerto Rico lines parallels its proposed sale of lines in rural Vermont, New Hampshire and Maine – with Verizon seeking to sell off lines in rural areas in which the company has chosen not to invest.

"CWA appreciates the efforts of FCC Chairman Kevin Martin and Commissioners Jonathan Adelstein and Michael Copps for their efforts to obtain a commitment for investment from America Movil," Cohen said.

CWA installers for Puerto Rico Telephone Co. are represented by CWA affiliates Union De Trabajadores de las Comunicaciones de Puerto Rico/CWA Local 3010.