Telecom News: CWA Wins, Build-out Mandate in California

CWA activists in California have helped pass landmark video franchising legislation that may well become a model for other states and which will enable the union's telecom employers to compete on a level playing field with cable TV providers. California is one of nine states that allow for statewide video franchising.

"Once again we've proven the value of the CWA Triangle," said District 9 Vice President Tony Bixler. "The political organization our district and locals have built over the years has succeeded in passing a law that will bring jobs of the future to CWA members as these unionized companies expand into providing video services to current and new subscribers."

The new law, developed with the assistance of the CWA research department, allows companies other than local cable providers to bring video services to subscribers' homes.

CWA Representative Nancy Biagini, Local 9400 member Alexandra Rooker, and members of the Northern California-Nevada CWA Council spent weeks at the Statehouse seeking support for the bill. "Cable companies have been offering video, Internet and voice and capturing some telecom customers. This bill now lets the telcos offer the same bundle and more," Biagini said.

Rooker, who besides being a CWA member is also vice chair of the state Democratic Party, worked to convince Assembly Speaker Fabian Núñez to author and muster support for the bill.

"We wanted to support the construction of an infrastructure in California by union companies," Rooker said. "Núñez held a meeting at the outset with representatives of Verizon, AT&T and CWA and made it clear to the telcos that the bill would not go forward without CWA support."

Hundreds of cable industry lobbyists descended on the Statehouse during the final weeks before passage. Tom Ramirez, chair of the CWA Northern California-Nevada, in an effort to set the record straight began distributing daily "Pinocchio bulletins" to assembly members. Fifteen separate bulletins, bearing a caricature of the wooden puppet known for his lying, countered the cable industry's assertions, proclaiming, "Cable Can't Be Trusted to Tell the Real Story."

One bulletin told how Comcast fired Navy veteran Will Goodo for testifying before the Oakland City Council regarding workers' right to organize and pointed out that Comcast has been charged with dozens of violations of federal labor law. Lawmakers were convinced of CWA's position.

Build-out Requirements

The California video franchising bill is a model for other states. It sets real goals and requirements for build-out. It stands in stark contrast to legislation passed in New Jersey and Virginia where companies are primarily wiring high income areas. The California bill requires companies to reach 25 percent of households in their service area within two years and 40 percent within five years. Companies not deploying fiber to the premise, like AT&T, which is building out fiber to the node, must reach 35 percent of households within three years and 50 percent within five.

The bill applies to all companies regardless of their choice of technology, with the exception of satellite.

All companies are banned from red-lining based on income. Within three years, 25 percent of customers with access to video service must be "low-income," defined as $35,000 or less per household. That percentage rises to 30 percent within five years. Further, companies must provide free service to one community center for every 10,000 video customers.

Effective, Jan. 2, 2008, cable companies can only obtain a state franchise when a competitor with a state franchise starts to offer video service in their franchise areas. Customer service standards will be established by the state and enforced by localities.

The legislation also protects existing union contracts, stating: "It is the intent of the legislature that collective bargaining agreements be respected." If a franchise transfers control from one company to another, collective bargaining agreements will continue in force.