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 to FCC: SBC-Ameritech Merger Will Foster Residential Competition and Create Good Jobs
The Communications Workers of America today urged the Federal Communications 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 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 occupational 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 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. Overall, CWA represents 630,000 workers in telecommunications, broadcast and cable TV, journalism, publishing, and the public service sector.
###
CWA pointed out that the SBC-Ameritech business plan calls for 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 occupational 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 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. Overall, CWA represents 630,000 workers in telecommunications, broadcast and cable TV, journalism, publishing, and the public service sector.
###