CWA, IBEW Cite Serious Concerns about Verizon Sale

CWA and IBEW are raising serious concerns about the sale of Verizon landlines in 14 states to Frontier Communications and are taking those issues to top management at both companies. 

The deal would move 4.8 million lines serving residential and business customers in 14 states to Frontier and includes all Verizon lines in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Oregon, South Carolina, Washington, West Virginia and Wisconsin, and some lines in California.

The deal calls for Frontier to take on $3.3 billion in debt; Verizon gets that amount in debt relief. That leaves Frontier saddled with debt that will lessen the potential amount available for investment in high speed broadband  build out.

Similar tax-free transactions by Verizon, especially those involving the Reverse Morris Trust tax provisions, haven't worked out so well, especially for consumers in New England now served by FairPoint Communications, CWA has pointed out.

CWA and IBEW will work together to support the interests of consumers, workers and retirees and will continue to review the deal. CWA represents about 3,900 workers affected by the sale and the IBEW represents about 4,200.