CWA Has Hard Questions about Verizon New England Deal

A proposed deal to sell off Verizon's wireline business in three New England states to a minor player in the telecom industry poses serious concerns about both customer service and jobs, CWA President Larry Cohen said.

He told reporters on a conference call Wednesday that CWA will be asking tough questions of the companies and state regulators in Maine, New Hampshire and Vermont as the $2.7 billion sale to North Carolina-based FairPoint Communications is scrutinized.

"Transferring those lines and customers to FairPoint is relegating those states to the basement in terms of Internet access," he said, pointing out that FairPoint is heavily debt-laden and "doesn't have the capital structure to offer 21st century network services. It takes $100 billion companies to roll out FIOS," he said, referring to Verizon's fiber to the premise Internet service.

CWA will be asking both companies and public service commissioners about specific commitments to investment in services and jobs, he said. CWA and IBEW represent about 3,000 Verizon workers in the three states, whose bargaining agreement expires next year.

While FairPoint has said it will maintain existing union jobs and add 600 positions, the company's track record is troubling. It recently closed several dozen call centers in 17 states, consolidating the jobs in Maine and Washington. CWA leaders want to know what FairPoint plans to do with the 350 CWA-represented Verizon customer service workers now employed in the three states.

FairPoint currently has about 250,000 access lines among its 28 rural telephone operations. The Verizon deal would jump FairPoint to the 8th largest U.S. telecom company, adding 1.5 million residential and business lines, 234,000 high-speed data subscribers and 600,000 long distance customers.