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CWA to FCC: SBC-Ameritech Merger Good for Customers and Workers
CWA urged the Federal Communi-cations Commission to approve the SBC Communications-Ameritech merger, noting that the partnership will foster competition in 30 new markets outside the companies' service regions and create at least 8,000 high-quality jobs.
CWA pointed out that the SBC-Ameritech business plan calls for providing both residential and business service in the new markets: "In addition to the 2,900 additional fiber miles and 60 switches they plan to deploy to serve large and mid-size businesses, the merged SBC-Ameritech plans to deploy 80 additional switches in 30 identified out-of-region markets to serve residential and small business customers, beginning one year after the merger."
"No other national provider has yet announced a comparable strategy to serve residential customers nationwide" through facilities-based investment, the CWA filing stated.
The union noted that in contrast to MCI-WorldCom's "vague statements of 'intent' to compete" in residential and small business markets during their merger review, SBC and Ameritech have put forth a concrete investment plan calling for $2 billion in capital expenditures.
CWA estimated that more than 8,000 new jobs will be created by the investment program - "good jobs, jobs that pay workers enough to support a family, jobs with an employer that values and invests in its workforce."
The union stated that the previous SBC-Pacific Telesis merger created more than 3,600 new jobs, noting that: "Unlike some carriers, SBC recognizes that having a stable, high-quality workforce is crucial to its success. Only with such a workforce can the company deliver the high quality of service that its customers expect and deserve."
CWA stated that, "SBC and Ameritech need to have a bigger footprint to compete for the business of large customers," otherwise, "they will face continued erosion of their largest accounts." Through a merger, "SBC and Ameritech will be able to hold onto their high-volume, high-profit customers, which will provide them with the revenues that they need to invest in upgrading the public switched network for the benefit of all of their in-region customers," the filing stated.
CWA represents 78,000 employees at SBC and 30,000 at Ameritech.
CWA pointed out that the SBC-Ameritech business plan calls for providing both residential and business service in the new markets: "In addition to the 2,900 additional fiber miles and 60 switches they plan to deploy to serve large and mid-size businesses, the merged SBC-Ameritech plans to deploy 80 additional switches in 30 identified out-of-region markets to serve residential and small business customers, beginning one year after the merger."
"No other national provider has yet announced a comparable strategy to serve residential customers nationwide" through facilities-based investment, the CWA filing stated.
The union noted that in contrast to MCI-WorldCom's "vague statements of 'intent' to compete" in residential and small business markets during their merger review, SBC and Ameritech have put forth a concrete investment plan calling for $2 billion in capital expenditures.
CWA estimated that more than 8,000 new jobs will be created by the investment program - "good jobs, jobs that pay workers enough to support a family, jobs with an employer that values and invests in its workforce."
The union stated that the previous SBC-Pacific Telesis merger created more than 3,600 new jobs, noting that: "Unlike some carriers, SBC recognizes that having a stable, high-quality workforce is crucial to its success. Only with such a workforce can the company deliver the high quality of service that its customers expect and deserve."
CWA stated that, "SBC and Ameritech need to have a bigger footprint to compete for the business of large customers," otherwise, "they will face continued erosion of their largest accounts." Through a merger, "SBC and Ameritech will be able to hold onto their high-volume, high-profit customers, which will provide them with the revenues that they need to invest in upgrading the public switched network for the benefit of all of their in-region customers," the filing stated.
CWA represents 78,000 employees at SBC and 30,000 at Ameritech.