Split Decision on Verizon-Frontier Deal

Charleston, West Virginia – The Communications Workers of America said today it is weighing all options after yesterday’s approval by the West Virginia Public Service Commission of the sale of the Verizon’s phone lines in the state to Frontier Communications.

“We’re in the process of evaluating the order,” said CWA District 2 Vice President Ron Collins. “After full review we’ll look at what we can do that will best serve West Virginia consumers and CWA members.” The union has 10 days to file a motion for reconsideration. If the ruling on that motion is unfavorable, CWA has 30 days to file an appeal with the state Supreme Court.

“Of course, we’re disappointed but we’re heartened by the fact that at least one person on the three-member commission agreed with us and the more than 80 legislators, several county commissions and a broad coalition of consumer, union and first responder organizations who stated that this deal is too risky and not in the public interest,” Collins said. “The split decision shows our arguments about the deal had validity.”

Collins also pointed out the commission’s ruling earlier this week requiring Verizon to put $72 million into an escrow account to improve the company’s aging copper network shows the commission agrees with the union on the issue of Verizon’s quality of service.

“The ink was barely dry on the first ruling which, in essence, says Verizon hasn’t done its job in taking care of its operations,” Collins said. “To give Verizon a pass to leave the state and turn over these problem-riddled lines to a smaller company doesn’t make a lot of sense to us.”

The $72 million ruling also shows Frontier didn’t know what it was buying when it entered into this deal. Had it known the true conditions of the operations and that the PSC would require $72 million in improvements, would Frontier have committed billions to this deal, Collins said.

CWA, which has opposed the deal since it was first announced a year ago, maintains that Verizon shouldn’t be allowed to leave West Virginia without first fixing its problems. As a public utility, the PSC has the power to take action and Collins said the $72 million isn’t enough. Today is the deadline for Verizon to put the $72 million into an escrow account.

The PSC ruling also set out conditions that must be met by Frontier. CWA is reviewing those conditions as well.