Why We Support H.R. 1542
Monday, December 10, 2001
ATT Broadband Members:
ATT has asked you to help lobby against H.R. 1542 and expressed their disappointment that we have chosen to support H.R. 1542. The Company claims passage of H.R. 1542 could cause thousands of potential lost jobs. What's the real story and why did CWA take the position we have?
Let's start with AT&T's plans for the company and for you. The newspapers and cable trade journals are full of stories about the demise of AT&T and the pending sale of Broadband. On December 7th USA Today ran a big story about how AT&T had failed to properly understand the cable industry. Management spent $110 billion for the acquisitions of cable systems which are now worth less than $50 billion. The article also listed several other mistakes that have taken AT&T from the top of the corporate world to a company fighting for survival.
The heavy borrowings AT&T used to finance their spending spree means huge interest payments which in turn means AT&T cares more about cutting expenses than growing the business. This is why Broadband Call Centers have been closed at several locations across the country and thousands of un-represented workers have already lost their jobs.
Today, there are two technologies for high-speed Internet connectivity: Cable Modems and telephone DSL lines. Cable modems outpace Bell DSL lines by 3 to 1. As workers in the industry we have two interests: a) to see the expansion of high speed Internet and b) conditions in the industry which serve to raise our wages and recognize our skills.
The bill, H.R. 1542, creates the same regulation for cable modems and telephone DSL lines. This will stimulate investment, growth and competition to build out these systems. This can only be good for jobs and can create a situation where the competing companies must bid against each other for the best labor to make the best technology work. This process creates more jobs and better jobs. That is why we support H.R. 1542.
