CWA Urges Support for Deutsche Telekom-VoiceStream Merger

Washington, D.C.-- The Communications Workers of America told the Federal Communications Commission that the merger of VoiceStream and Deutsche Telekom will benefit consumers, workers and the public interest and should be approved.

"Deutsche Telekom's financial resources and expertise will stimulate investment in advanced wireless networks in the U.S., bringing new services to customers and the growth of new jobs," CWA said in a filing to the Commission. "Equally important, the transfer of Deutsche Telekom's unique corporate culture and partnership with its workforce will benefit U.S. consumers with high-quality services and U.S. workers with high-quality jobs," the union noted.

VoiceStream will gain the additional resources it needs to build out its existing licenses and strengthen its network, CWA said, noting that VoiceStream now has built out just 45 percent of its licensed areas. The new company will have the resources to acquire additional licenses, expand its national footprint and invest in next-generation wireless services, the union added.

Deutsche Telekom is a good employer and good corporate citizen that recognizes the interests of all stakeholders, including workers, consumers and communities. "Deutsche Telekom's presence in the U.S. market will create a more positive competitive dynamic in the U.S. telecommunications industry," CWA said.

Deutsche Telekom's current level of foreign government ownership, now at 58.2 percent, will decline to 45.7 percent as a result of the merger, CWA noted out. This level of foreign ownership "does not provide a valid basis for rebutting the strong presumption in favor of approval," a standard the Commission adopted in 1997 and has applied in a number of recent mergers, including Vodafone and Airtouch, Global Crossing and Frontier, and others, CWA said.

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