Communications Workers of America believes that spectrum deals between cable operators and Verizon Wireless could bring about changes in the telecommunications scene by ending competition, weighing consumers down with higher prices and at the same time reducing the number of choices available.
Verizon Wireless is in talks to purchase wireless airwaves worth $3.9 billion from cable companies like Comcast and Time Warner. This move has been heavily opposed by the union for telecom workers. According to the union, through this deal, even though business rivals will turn into partners it may work against the consumers. The policy director for CWA, Debbie Goldman, pointed out that a deal between the top cable operators and Verizon Wireless will end possibility of competition in the telecommunications sector.
More insight on how this will happen could not be provided as the key lies in the commercial agreements that are away from the purview of the consumers, as in the instance of the redacted documents submitted by Verizon and the cable operators for review to the FCC. The CWA has gone ahead and filed a 16-page detailed report of their concerns and submitted it to the FCC.
Through this deal, cable operators will be allowed to sell mobile services by Verizon as a result of being a part of a joint unit created by the marketing contract which accompanies the spectrum sale. Verizon Wireless believes the deal between itself and the cable operators will benefit the consumers. They have provided the FCC with all the relevant data they require to make the final decision.
The CWA, on the other hand, has pointed out that the joint unit resulting from the commercial agreements is connected to the spectrum sale and separating it from public interest would be rather artificial. These agreements will give the companies the power to take over voice, video, broadband and wireless services owned by Verizon. Verizon will then most likely not expand the high-speed internet network for their rival own high speed network, FiOS.
Sprint Nextel, MetroPCS Communications and T-Mobile USA agree with the CWA and have expressed similar concerns to the FCC. CWA wants the FCC to provide for the expansion of FiOS and the assurance that all competitors in the market will have equal access to intellectual property and services shared by the cable operators and Verizon, to ensure the existence of healthy competition in the market. The FCC is expected to take a decision on the matter soon while the Justice Department probes further for any antitrust concerns.
