Showing posts with label Communications Workers of America. Show all posts
Showing posts with label Communications Workers of America. Show all posts

Tuesday, December 01, 2015

Transition from copper to fiber plant? Show me the fiber.

From a Communications Workers of America (CWA) Nov. 29, 2015 blog post:
The Communications Workers of America (CWA) filed reply comments at the Federal Communications Commission (FCC) in support of an FCC proposal to adopt clear criteria to evaluate a telecom carrier’s request to discontinue, reduce, or impair legacy service. As communications infrastructure changes from copper to fiber, the fundamental goals of communications policy remain the same: universal service, consumer protection, public safety and national security, and competition.
Note the emphasized text on the transition from copper to fiber. Reading further leads to some major cognitive dissonance that suggests telcos aren't in fact transitioning from copper to fiber but instead retiring their landline outside plant and sending residential and small business customers to satellite and their mobile wireless offerings:
CWA urged the FCC to add an additional criteria: affordability. If an alternative service is more expensive -- such as wireless with data caps or satellite service for Internet access -- then it is not an adequate substitute to legacy wireline service.

Monday, September 22, 2014

CWA's support of AT&T/DIRECTV merger based on fallacious logic

CWA says AT&T-DIRECTV merger will advance broadband buildout, help consumers, Workers | Speed Matters - Internet Speed Test: The AT&T/DIRECTV merger will improve the economics for AT&T’s investment in high-speed broadband, the critical infrastructure for the 21st century, CWA said. Video is the major driver of broadband expansion, producing the revenue stream to support investment in high-speed networks. As a stronger video competitor, a merged AT&T/DIRECTV will have the economic incentives to increase investment in the high-capacity networks that are so essential to drive economic growth, jobs, and the social benefits enabled by high-speed digital technology.

So asserts the Communications Workers of America in comments filed with the U.S. Federal Communications Commission in support of AT&T's acquisition of DIRECTV.

The problem is the logic does not hold up. AT&T's deriving additional revenues from DIRECTV video services does not necessarily mean those additional funds will be invested in landline Internet infrastructure.

And why should that be the case, AT&T will likely ask itself once the deal goes through, when satellite does the job of delivering video content to residential premises? Instead, any video revenue bump from the deal will likely be plowed into earnings and dividends, not CAPex.