Communications Workers Seeks Conditions on Verizon Bid for Cable Spectrum

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February 21, 2012 5:33 PM EST

WASHINGTON–(BUSINESS WIRE)–
In a filing to the Federal Communications Commission, the Communications
Workers of America called for specific conditions on the application by
verizon Wireless to purchase additional spectrum from four cable
providers.

CWA does not oppose the sale of spectrum. We believe that spectrum
should be used and that additional spectrum is necessary to expand
connectivity. However, to ensure competition, protect consumer choice,
and promote job-creating investment, the FCC should set specific
conditions on this application.

The FCC has stated and CWA agrees that competition among network
operators is critical to ensure that broadband is affordable and
accessible. The proposed transaction, without conditions, would
eliminate the historic competition between FiOS and cable company
services through joint marketing arrangements. The result: reduced
investment in infrastructure, job loss and higher prices for consumers.
Millions of consumers in Baltimore, Boston, Buffalo and other cities in
the verizon footprint where the company has not yet built FiOS will
never have access to the advanced fiber network.

The joint marketing agreements will give Verizon and the cable companies
— through their ability to offer a quad play of voice, video, data and
wireless from the top video, broadband, and wireless providers — the
market power to harm competition, raise cable and broadband rates and
reduce incentives for new video entrants to invest in their networks,
leading to significant job loss.

CWA is calling for specific conditions on this transaction.

First, consistent with past transactions, the FCC should require that
Verizon continue to offer FiOS broadband Internet access service, expand
its in-region deployment to cover at least 95 percent of residences and,
following the merger, continue to deploy a set percentage of broadband
to rural and low income areas, with timetables, data reporting and
penalties for non-compliance.

Second, the joint marketing arrangements should not be permitted to put
other marketers of Verizon Wireless service at a disadvantage.
Comparable conditions and terms for the marketing of Verizon Wireless
service should be available to all wireline competitors in a market.
This will even the playing field among competitors.

CWA urges the FCC carefully to review this proposed transaction and
address the effect on competition, consumers and jobs by setting
conditions to ensure the deal is in the public interest.

CWA CommunicationsCandice Johnson, 202-434-1168cjohnson@cwa-union.orgorChuck
Porcari, 202-434-1168cporcari@cwa-union.org

Source: Communications Workers of America (CWA)