AT&T’s Proposed Acquisition of Lumen’s Home Fiber Business Raises Concerns for Workers and Consumers

On May 21, AT&T announced plans to acquire Lumen’s residential fiber business across 11 states, which serves a million customers. CWA represents workers at both AT&T and Lumen.

The structure of this transaction raises serious concerns for Lumen’s workers and customers. Rather than transferring the residential fiber assets to AT&T, they are being sold to a new subsidiary that AT&T is calling “NetworkCo,” which will then be partially sold to an as yet unnamed private equity partner.

“We are taking a close look at AT&T’s plans for Lumen’s home fiber business to assess the impact on our members and communities,” said CWA President Claude Cummings Jr. “Our union’s leadership will work with both companies to ensure that our members are respected and protected so that they can continue providing the high-quality service that customers deserve.”

Two years ago, AT&T launched a similar subsidiary, called Gigapower, which has begun operating in several markets. A CWA review of Gigapower’s deployment found that instead of hiring trained, experienced workers, AT&T’s Gigapower relies heavily on multi-tiered subcontracting and temporary staffing agencies. This low-road business model has put public safety at risk. In two cities—Mesa, Ariz., and Bloomington, Minn.—Gigapower contractors have been responsible for nearly 450 incidents of damage to the public right-of-way, and dozens of preventable underground utility hits.

“Our members care deeply about the customers and communities we serve,” said CWA District 7 Vice President Susie McAllister. We have fought to ensure that fiber buildout is done right, with high-quality networks built by experienced union technicians. AT&T’s stated plans for Lumen’s home fiber business put that at risk. CWA members are going to make sure that regulators and elected officials understand and address our concerns as this process moves forward.”

“AT&T should be putting its customers and workers first, not its shareholders,” said CWA District 3 Vice President Richard Honeycutt. “Lumen’s customers deserve a first-class fiber network, and that’s what CWA members deliver. Before this transaction is approved, AT&T and Lumen must commit to maintaining a well-trained, directly hired union workforce and make sure that customers who depend on Lumen’s copper network are not left behind.”

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About CWA: The Communications Workers of America represents working people in telecommunications, customer service, media, airlines, health care, public service and education, manufacturing, tech, and other fields.

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