See more news releases in: Computer Electronics, Telecommunications Industry, Acquisitions, Mergers and Takeovers, Domestic Policy, Labor & Union
CWA Applauds FCC for Requiring Public Interest Investment by America Movil in Purchase of Puerto Rico Telephone
WASHINGTON, March 26 /PRNewswire-USNewswire/ -- In its order approving
America Movil's purchase of the Puerto Rico Telephone Co., from Verizon
Communications, the Federal Communications Commission called for important
commitments and assurances from America Movil to ensure that the transfer
serves the public interest. The Communications Workers of America applauds
the FCC's action.
To win merger approval, America Movil committed to invest $1 billion in
communications and information services in Puerto Rico over the next five
years. "CWA views this as a promise to the people of Puerto Rico, and will
be watching that America Movil meets this commitment. We expect that the
FCC and the Puerto Rico Regulatory Authority will be vigilant in monitoring
compliance," said CWA President Larry Cohen.
This Puerto Rico Telephone sale is the first time that a foreign
company will own wireline telecommunications facilities on U.S. soil, and
the FCC indicated that it needed to set a high bar to ensure that the
transfer serves the public interest. America Movil is a Mexican company
owned by Carlos Slim Helu, providing telecommunications services to 14
countries.
Verizon bought Puerto Rico Telephone Company in 2000 but made
negligible investment in the network, and under its ownership, telephone
penetration declined from 74 to 61 percent. The infrastructure is in such
poor condition that most lines are not DSL capable, denying customers
access to changing technologies.
Verizon's sale of its Puerto Rico lines parallels its proposed sale of
lines in rural Vermont, New Hampshire and Maine -- with Verizon seeking to
sell off lines in rural areas in which the company has chosen not to
invest.
"CWA appreciates the efforts of FCC Chairman Kevin Martin and
Commissioners Jonathan Adelstein and Michael Copps for their efforts to
obtain a commitment for investment from America Movil," Cohen said.
CWA installers for Puerto Rico Telephone Co. are represented by CWA
affiliates Union De Trabajadores de las Comunicaciones de Puerto Rico/CWA
Local 3010.
SOURCE Communications Workers of America
Back to top
Custom Packages
Browse our custom packages or build your own to meet your unique communications needs.
PR Newswire Membership
Fill out a PR Newswire membership form or contact us at (888) 776-0942.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.
Featured Video
More in These Categories
Journalists and Bloggers
![]()
Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.
View and download archived video content distributed by MultiVu on The Digital Center.
Free Investing Newsletter from Investor Uprising!
Learn to navigate the world's financial system and profit from leading companies.
Register for Investor Uprising, the people's investment site, for a free weekly newsletter, information, education and premium research including our latest IU Confidential Report - "All The Glitters: The Ultimate Gold Report".
