CWA Calls for Scrutiny of Sprint, Nextel Wireless Merger

Washington, D.C. -- The Communications Workers of America is calling on federal and state regulators to carefully address the critical issues raised in the proposed deal by Sprint Corp. to acquire Nextel Communications.

Sprint has indicated that the combined company would spin off Sprint's local telephone companies, which now serve 7 million mostly rural customers in a number of states. The Department of Justice, Federal Communications Commission and state Public Utility Commissions must ensure that this spin off is fair to those telephone customers, said CWA President Morton Bahr.

"That means ensuring that rural ratepayers are not saddled with a disproportionate and unfair share of the wireless debt. In order for rural citizens to benefit from the promise of Internet technology, they must have access to telephone networks that have the financial capability to thrive and bring the benefits of advanced technologies to these markets. Rural customers should not be forced into the position of subsidizing this wireless deal," he added.

CWA called on regulators to make certain that Sprint workers at the local telephone companies are not subject to job loss, reduction in their standard of living and loss of pensions and other benefits, due to this wireless acquisition. These workers have created great value for Sprint and must be treated fairly, CWA said.

Regulators also must address any anti-competitive aspects of the proposed merger of the two companies' wireless assets, the union noted.

CWA represents about 3,400 Sprint employees who work for Sprint's local telephone companies in 11 states; the International Brotherhood of Electrical Workers represents about the same number of local Sprint workers.

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