The AFL-CIO is “deeply concerned” about the effect commercial agreements...
The AFL-CIO is “deeply concerned” about the effect commercial agreements between Verizon Wireless and cable companies would have on “competition, consumer choice, network investment, jobs, and prices,” the labor group said in an FCC filing. It raised objections to Verizon’s…
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proposed purchase of AWS licenses from SpectrumCo and Cox, and associated market agreements that were also unveiled in December (CD Dec 5 p1). “Prior to the announcement of this transaction, Verizon and the cable companies competed vigorously against each other,” AFL-CIO said (http://xrl.us/bmzkob). “This competition drove Verizon’s investment in its all-fiber FiOS network, sustaining thousands of good middle-class jobs and providing working families with access to a truly world class broadband network that competed with cable’s video and Internet access services. Now it appears that these formerly bitter rivals have declared a truce, choosing to collaborate rather than compete.” The deals would mean Verizon has less incentive to build out its FiOS network and that is bad for the economy, AFL-CIO said. “It will result in the loss of thousands of good, middle-class union jobs and represent a significant setback for workers’ rights in this country.” T-Mobile questioned whether Verizon has been able to show the deals are in the public interest. “In an effort to show public benefits from the Transactions, they reiterate the well known industry-wide need for spectrum resources to satisfy growing consumer demand for mobile broadband services,” T-Mobile said (http://xrl.us/bmzmeu). “However, such generalized benefits would be realized whenever any carrier obtains any additional spectrum -- and in this case, would be substantially greater if virtually any carrier other than spectrum-rich Verizon acquired the frequencies at issue.” Sprint Nextel raised similar concerns (http://xrl.us/bmzmmg). “The agreements between Verizon and the Cable Companies significantly change their commercial incentives, converting the owners of these wired ecosystems from natural competitors to comrades in arms, on an apparent mission to divide the markets for a wide range of services in a manner that would increase their profits, raise retail prices, and limit consumer choice."