Verizon Sale Raises Concerns for Workers, Rural Communities

Contact: Candice Johnson, CWA Communications, 202-434-1168, cjohnson@cwa-union.org and Jim Spellane, IBEW Communications, 202-728-6014, Jim_Spellane@ibew.org

Washington, D.C. -- The International Brotherhood of Electrical Workers and the Communications Workers of America have serious concerns about the pending sale of Verizon Communications landlines to Frontier Communications Corp. The unions will continue to review the proposed deal. 

The sale would move 4.8 million lines serving residential and business customers in 14 states to Frontier. 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 deployment.

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.

The two unions are reviewing the deal and will bring concerns to management at both Verizon and Frontier. They will work together to support the interests of consumers, workers and retirees. CWA represents about 3,900 workers affected by the sale and the IBEW represents about 4,200.