Earlier today, reports surfaced that U.S.-based telco powerhouse, CenturyTel announced plans to acquire Qwest (News - Alert) Communications International Inc., in a stock swap worth $10.6 billion.
While this move would be a lethal combination of over 18 million phone lines combined, the acquisition also raised a few eyebrows in regards to industry trends and what this means for telephone companies going forward.
Hoping to pre-empt consumer migration to a Cablevision Triple Play (News - Alert)-type package, CenturyTel - formerly known as “CenturyLink” - and Qwest likely want the acquisition will create a competitive edge with a higher quality communications platform, to expand the reach of their broadband Internet services for consumers. The companies were not immediately available for comment.
But, the Communications Workers of America released a statement claiming future efforts to connect with Qwest and CenturyLink to focus on the employment security and rights of its members and investment in high speed Internet in various communities.
“Our nation is plagued by job cuts and Wall Street terms like ‘merger synergies’ that are often just shorthand for job cuts or pay cuts,” the Communications Workers of America said in a release. “President Obama’s job summit and recent legislation put jobs front and center, not just at a conference but in all governmental decision-making.”
With the recent FCC (News - Alert) broadband plan that aims to equip 80 percent of households by 2015, the Communications Workers of America plans to work with management, and with the FCC and state regulators, to make sure that this merger offers specific commitments to meet these goals.
Kelly McGuire is a TMCnet Web editor, covering CRM and workforce technologies, and anchor of its daily TMC Newsroom video broadcast. Kelly also writes about eco-friendly "green" technologies and smart grids, compiling TMCnet's weekly e-Newsletters on those topics, as well as the cable industry. To read more of Kelly's articles, please visit her columnist page.
Edited by Kelly McGuire