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.
CWA Tells FCC: Bell Atlantic-GTE, SBC-Ameritech Mergers Will Boost Competition and Benefit All Consu
Merger proposals now before the Federal Communications Commission will accomplish exactly what Congress hoped to achieve in telecommunications reform and should be approved. That was the message from Communications Workers of America President Morton Bahr to the FCC, which is reviewing the pending mergers between Bell Atlantic and GTE and SBC Communications and Ameritech.
Bahr has outlined the benefits of these mergers, for consumers and workers, most recently in a letter to FCC Chairman William Kennard, and in other statements.
Both mergers will create jobs, expand services and options to residential and business consumers, and provide real competition in a greatly expanded number of markets- all principal goals of the 1996 Telecommunications Act, Bahr pointed out. This pooling of resources is necessary to ensure that these companies have a fair opportunity to compete in today's highly competitive telecommunications environment, he added. Certainly, the mergers will enable them to retain large business customers- a key element in ensuring that they will continue to have the necessary resources to invest in and develop out-of-region facilities that benefit all classes of consumers, he added.
Bahr asked regulators to compare the real benefits likely to result from these pending mergers to what "we've seen so far from MCI-WorldCom. MCI has `zeroed out' all local network development, in addition to announcing cuts of as many as 3,500 jobs, despite assurances to the FCC and other regulators that jobs would not be eliminated," he said.
Further, the MCI-WorldCom merger, which was approved by regulators over the opposition of CWA, consumer groups and others, has created an imbalance in the industry that requires other companies to pool resources and join together in order to compete with this colossus, Bahr pointed out.
SBC has a proven track record in both job creation and service and product development. In its merger with Pacific Telesis, SBC created an additional 3,600 new occupational jobs, in addition to expanding wireless service and other services throughout the new regions. At Southern New England Telephone, SBC is committed to adding new jobs to maintain and improve quality service for Connecticut consumers. "Unlike some carriers, SBC recognizes that having a stable, high-quality workforce is crucial to its success and will enable it deliver the high quality of service that customers expect and deserve," Bahr said.
Bell Atlantic, in its merger with NYNEX, is creating thousands of new jobs as it provides residential and business customers with additional options in Internet, data network, multi-media and other services.
Further, GTE, Bell Atlantic, SBC and other companies must be able to compete with the likes of MCI-WorldCom, and this means being able to put together the plans and the resources to make national strategies work. "Through merger, these companies will have the revenues they need to invest in upgrading the public switched network for the benefit of all of their in-region customers, and new customers in new markets," Bahr said.
"In its merger review, MCI-WorldCom offered the vaguest statements of `intent to compete' in residential and small business markets, and now it's clear that even those shadowy goals aren't likely be met. In contrast, SBC and Ameritech have put forth a concrete investment plan calling for some $2 billion in capital expenditures that will enable the company to serve residential and small business customers," Bahr said. A merged Bell Atlantic-GTE will dramatically expand services to the mass market, by speeding the deployment of advanced telecommunications networks and enhancing competition in wireless and international markets, he noted.
Bell Atlantic and GTE will enter and compete in 21 new markets within 18 months of the merger taking effect, according to its business plan. SBC has presented a business plan that will enable it to offer services and compete head-to-head with MCI-WorldCom, AT&T, and other companies in the country's top 50 markets, with the company moving into 30 new markets outside its region and offering more choice and competition for consumers one year after merger.
"It's clear that these mergers the commission is now considering are clearly in the public interest and would more than fulfill Congress's goals for telecommunications reform," Bahr said, urging the FCC to act promptly and favorably on the proposals.
###
CWA represents 78,000 employees at SBC and 30,000 at Ameritech; the union also represents 72,000 at Bell Atlantic and 25,000 at GTE. Overall, CWA represents 630,000 workers in telecommunications, broadcast and cable television, journalism and other media, publishing, health care and the private sector, the airline industry, higher education and law enforcement.
Bahr has outlined the benefits of these mergers, for consumers and workers, most recently in a letter to FCC Chairman William Kennard, and in other statements.
Both mergers will create jobs, expand services and options to residential and business consumers, and provide real competition in a greatly expanded number of markets- all principal goals of the 1996 Telecommunications Act, Bahr pointed out. This pooling of resources is necessary to ensure that these companies have a fair opportunity to compete in today's highly competitive telecommunications environment, he added. Certainly, the mergers will enable them to retain large business customers- a key element in ensuring that they will continue to have the necessary resources to invest in and develop out-of-region facilities that benefit all classes of consumers, he added.
Bahr asked regulators to compare the real benefits likely to result from these pending mergers to what "we've seen so far from MCI-WorldCom. MCI has `zeroed out' all local network development, in addition to announcing cuts of as many as 3,500 jobs, despite assurances to the FCC and other regulators that jobs would not be eliminated," he said.
Further, the MCI-WorldCom merger, which was approved by regulators over the opposition of CWA, consumer groups and others, has created an imbalance in the industry that requires other companies to pool resources and join together in order to compete with this colossus, Bahr pointed out.
SBC has a proven track record in both job creation and service and product development. In its merger with Pacific Telesis, SBC created an additional 3,600 new occupational jobs, in addition to expanding wireless service and other services throughout the new regions. At Southern New England Telephone, SBC is committed to adding new jobs to maintain and improve quality service for Connecticut consumers. "Unlike some carriers, SBC recognizes that having a stable, high-quality workforce is crucial to its success and will enable it deliver the high quality of service that customers expect and deserve," Bahr said.
Bell Atlantic, in its merger with NYNEX, is creating thousands of new jobs as it provides residential and business customers with additional options in Internet, data network, multi-media and other services.
Further, GTE, Bell Atlantic, SBC and other companies must be able to compete with the likes of MCI-WorldCom, and this means being able to put together the plans and the resources to make national strategies work. "Through merger, these companies will have the revenues they need to invest in upgrading the public switched network for the benefit of all of their in-region customers, and new customers in new markets," Bahr said.
"In its merger review, MCI-WorldCom offered the vaguest statements of `intent to compete' in residential and small business markets, and now it's clear that even those shadowy goals aren't likely be met. In contrast, SBC and Ameritech have put forth a concrete investment plan calling for some $2 billion in capital expenditures that will enable the company to serve residential and small business customers," Bahr said. A merged Bell Atlantic-GTE will dramatically expand services to the mass market, by speeding the deployment of advanced telecommunications networks and enhancing competition in wireless and international markets, he noted.
Bell Atlantic and GTE will enter and compete in 21 new markets within 18 months of the merger taking effect, according to its business plan. SBC has presented a business plan that will enable it to offer services and compete head-to-head with MCI-WorldCom, AT&T, and other companies in the country's top 50 markets, with the company moving into 30 new markets outside its region and offering more choice and competition for consumers one year after merger.
"It's clear that these mergers the commission is now considering are clearly in the public interest and would more than fulfill Congress's goals for telecommunications reform," Bahr said, urging the FCC to act promptly and favorably on the proposals.
###
CWA represents 78,000 employees at SBC and 30,000 at Ameritech; the union also represents 72,000 at Bell Atlantic and 25,000 at GTE. Overall, CWA represents 630,000 workers in telecommunications, broadcast and cable television, journalism and other media, publishing, health care and the private sector, the airline industry, higher education and law enforcement.