(WASHINGTON, D.C.) - The proposed deal between Verizon Wireless and the Big Cable Companies will cost Workers and Communities 72,000 jobs, according to a new report made public by the Communications Workers of America.

The Federal Communications Commission (FCC) and the U.S. Department of Justice are reviewing a proposed deal that would allow Verizon Wireless and a number of Companies -including Time Warner and Comcast - to cross-market each other’s products, thereby eliminating competition and job-creating investment.  The cross-marketing deal eliminates Verizon Communications’ incentives to expand and promote its State-Of-The-Art. All-Fiber FiOS Network to compete with its new Cable Partners’ Broadband and Video Service.  

In comments filed at the FCC on Tuesday (July 10th), CWA emphasized the proposed spectrum swap between Verizon Wireless and T-Mobile “does nothing” to address the Job Loss and Consumer Harm that will result from the Anti-Competitive, Cross-Marketing Agreements that are a central component of this transaction.

In order to safeguard Jobs and protect the interests of both Consumers and Communities, the CWA is calling on Regulators to impose the following conditions on the deal: Prohibit Verizon Wireless and the Cable Companies from cross-marketing in Verizon's Land-Line Footprint; Require Verizon to build the FiOS Network to 95% of Verizon Households in its Land-Line Footprint, including build-out in Rural and Low-Income Areas; and Ensure Verizon Wireless and other Cable Companies are not able to lock out competitors.

Verizon has made it clear that it will not follow through with an expansion of its FiOS Service to Customers and Communities that do not currently have access to it.  Despite the fact that FiOS is profitable for Verizon, CEO Lowell McAdam said Verizon plans to stop its build-out of FiOS TV and Internet Services in the next several years and “wind down the FiOS spend.”

Under the proposed deal, Verizon simply will resell the Cable Companies’ Services and undercut its own existing FiOS Service.  As a result, more than seven million customers – 30% of the area Verizon now covers with land-lines - will be left without the FiOS option for High-Speed Internet and TV, as well as the jobs the build-out would create.  But if Verizon were to build out its Network, as many as 72,000 new Jobs would be created, the CWA Report found.  Job growth would be concentrated in eight Eastern States, including New York, and Washington D.C.

“If done right, the proposed deal would add tens of thousands of new Jobs and allow underserved Communities access to High-Quality Broadband Service,” CWA Telecommunications Policy Director Debbie Goldman said.  “The FCC has the obligation carefully to assess this deal in terms of likely Job Loss.  We expect Regulators to reject this deal unless the parties accept conditions that would create Jobs, increase Network Investment and promote Consumer Choice.”

Some previous assessments by the FCC of the impact of mergers and other deals on Jobs haven’t held up.  The FCC failed fully to consider how the AT&T/T-Mobile USA Merger would positively affect Jobs.  Regulators did not approve that merger, and last month, T-Mobile USA shut down seven Call Centers, affecting the jobs of 3,300 Workers, while T-Mobile USA continues to off-shore work to Asia and Central America. 

The CWA Report’s estimates are based on a projection of direct, indirect and induced employment that would result if Verizon builds its High-Speed, Fiber-Optic FiOS Wire-Line network to 95% of households in its footprint - one of three conditions that the CWA is asking Federal Regulators to impose on the deal so that it is in the interest of Consumers and Communities.

Job creation projections in the Study are calculated in Job-Years, which are Units of Employment for a one-year period.  Direct Job Creation would be concentrated in multiple sectors, including the Telecom, Manufacturing, Maintenance, Construction, Architectural and Engineering Sectors.

Job creation projections include:

• Direct: 18,754 Jobs related to the FiOS build, including Technicians, Installers and Engineers.
• Indirect: 20,914 Jobs created from the in-puts needed for the FiOS build, including Fiber-Optic Cable and Telecom Equipment.
• Induced: 32,042 Jobs created in Communities where those employed in the FiOS build or its in-puts would purchase goods and services.

The Study’s estimates are consistent with or are more conservative than other studies on Telecom Investments.  For example, an analysis by the Economic Policy Institute Wireless Investment found that a $1 billion Wireless Investment creates 12,000 Jobs years – which is consistent with CWA’s projections in the new Report.

Another Study by the Information and Technology Innovation Foundation has estimated that every $1billion investment in Broadband Infrastructure would create 50,000 jobs.

The full report can be found here: http://cwafiles.org/national/FiOS_Job-Impact.pdf