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Unions Figure Out Verizon's About to Kill Them Off
CWA Starts to Worry About Cable Deal, Death of DSL
by Karl Bode 02:50PM Friday Aug 10 2012
As we recently noted in great detail, Verizon is essentially giving up on essentially all of their DSL and landline networks, intentionally driving those unwanted users to cable operators by raising prices and forcing DSL users to bundle landlines they don't want. Most of the press hasn't really noticed Verizon's strategy yet, but the unions appears to finally be getting wise to the fact that with the death of DSL, the stoppage of FiOS expansion and the focus on fixed and mobile LTE -- comes the death of the telecom union (Verizon Wireless is not unionized).

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CWA rallied in front of a Verizon office in Albany this week to protest what they correctly see as the inevitable end of the road for their employment. The CWA Tells the Albany Times Union the deal could kill off 25,000 jobs in New York State alone, and while the CWA often plays fast and loose with job numbers, in this instance they may not be wrong:
...the CWA is concerned that Verizon Wireless' marketing deal with cable companies like Time Warner Cable will curtail Verizon Communication's plans to expand its own high-speed FiOS fiber-optic TV, data and voice network. The CWA believes that the deal — in which Verizon Wireless and the cable companies would agree to sell each other's services — would threaten 25,000 jobs in New York state and raise prices for TV, Internet and phone services through what they essentially call a monopoly. The deal needs confirmation by federal regulators before it can move forward.
As our regular readers know however, Verizon had already stopped FiOS expansion (outside of major metro franchise obligations), and was already trying to figure out how they could get rid of the millions of DSL customers they don't want to upgrade. After several high profile ugly deals that left acquiring companies like Frontier and Fairpoint loaded with debt and old networks, nobody wanted to do additional deals with Verizon, so Verizon figured that nudging them to Verizon's new cable BFF partners -- then more than recouping any losses by marketing them wireless service -- made sense.

Those that don't flee slow Verizon speeds and price hikes will likely be in uncompetitive markets without a cable alternative. In those instances, Verizon will direct users to their Home Fusion LTE service and its steep per gigabyte overages, which will ultimately be far more expensive for consumers. For the CWA, all that will be left will be a FiOS footprint that won't grow, with Verizon and cable winking and nodding to keep real competition (especially on price) in those markets to an absolute minimum.

Verizon's long been at war with the unions, and this conversion away from DSL to LTE will truly be the killing blow to the CWA's increasingly dwindling power in telecom.

141 comments .. click to read

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Binghamton, NY

3 recommendations

reply to cferro

Re: The unions will probably try to take over VZW

said by cferro:

Toll collectors need a decent living wage. Many jobs are being lost to E-Z Pass.

Telephone operators need a decent living wage. Many jobs have been lost since the introduction of the Strowger switch.


·Verizon FiOS

4 recommendations

reply to IowaCowboy
Verizon wants to partner with the Cable industry? Sure, expand FiOS to 95% of your footprint. Whether there be television franchises or not.

The unions want to deploy FiOS everywhere, which you people always seem to want. But then you start screaming this anti-worker BS, and side with a company that wants to kill off jobs and give you LTE everywhere which will destroy your wallet.

Im tired of hearing people judge the worth of others. If you think being a toll collector is an overpaid, awesome job, take your BA and Masters, and fill out an application.

So many hypocrits and turds on this website, it truly is sickening.


Binghamton, NY

3 recommendations

reply to StuFry
said by StuFry :

Highway Toll jobs are among the most dangerous to your health, I'd think it would be criminal to pay someone less than 50k.

I used to climb communication towers for a LOT less than 50k/yr and I'll guarantee you that job is more dangerous than sitting in a toll booth collecting tickets and making change.

The analogy is an apt one though, the CWA used to work for a company with a completely captive market, just as toll collectors do. They could demand whatever they wanted and Ma Bell was happy to oblige because they had a guaranteed source of revenue. The paradigm has since changed and the telephone company actually has to be competitive in order to survive. Of course, like most unions, the CWA doesn't worry about remaining their employer remaining competitive, business reality, or any of the other factors that employers (and employees at non-union shops) need to worry about. All they care about is "more, more, more."

Don't get me wrong, I have many friends who are CWA members and professionally they've pulled my butt out of the fire on numerous occasions. I just can't abide the entitlement complex that unions have, nor do I agree with professions where union membership is mandatory if you want to get/keep a job. I shouldn't be compelled to join an association and tithe my income to it in order to have a livelihood.

BTW, speaking of toll collectors, it's a LOT of fun to drive through the manned toll lane with your E-ZPass and see the look of disappointment on their face when you drive by without needing them. Enjoy the gravy train while it lasts people, you're already obsolete; it's only a matter of time before E-ZPass becomes mandatory or is supplemented with license plate readers to catch the people without tags.