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