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Labor, Business Groups Urge Congress to Reject Unnecessary Restrictions in Telecom Investment
The Communications Workers of America, the AFL-CIO and the U.S. Chamber of Commerce are calling on Congress to reject a legislative proposal that would unnecessarily restrict investment in U.S. telecommunications companies by foreign-owned companies with more than 25 percent government ownership.
At a joint news briefing, all three organizations expressed concern that the measure "would move us in the wrong direction at a time when global expansion in telecommunications is fueling enormous economic growth and competitive benefits for consumers."
CWA President Morton Bahr said there is room in the U.S. telecommunications market for competition from foreign-owned firms, even those partially owned by foreign governments. "The principles that should guide decisions about permitting a company to do business here must be whether the firm meets high standards for delivery of high-quality, universal service, whether it will contribute to building the nation's communications network through investment and growth and whether its employment practices reflect a respect for workers' rights," Bahr said.
"Deutsche Telekom, an apparent focus of this provision, is a good employer and a good corporate citizen. It is a very positive example of a company that serves the public interest, one that has sustained a positive relationship with its union workforce," he said. This restrictive proposal would, in fact, deny U.S. consumers and workers the benefits of a quality competitor, Bahr said. He also noted that the German government has indicated that it is committed to the full privatization of the company.
Telecommunications is a global industry, and foreign firms, some with partial government ownership, have acquired U.S. communications companies. Similarly, virtually all major U.S. telecommunications companies have expanded abroad, with overseas operations or direct investments in foreign government controlled communications companies, or companies that previously had been government controlled, he said.
Concerns about national security already have been thoroughly addressed, with checks and safeguards to assure a level playing field for competitive telecommunications and maintain our national security, Bahr noted.
"With these safeguards in place, our lawmakers and policy makers should focus on how better to develop our telecommunications sector and expand job opportunities within it, not restrict the entry of quality competitors like Deutsche Telekom that already meet high standards for the delivery of quality service," he stressed.
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At a joint news briefing, all three organizations expressed concern that the measure "would move us in the wrong direction at a time when global expansion in telecommunications is fueling enormous economic growth and competitive benefits for consumers."
CWA President Morton Bahr said there is room in the U.S. telecommunications market for competition from foreign-owned firms, even those partially owned by foreign governments. "The principles that should guide decisions about permitting a company to do business here must be whether the firm meets high standards for delivery of high-quality, universal service, whether it will contribute to building the nation's communications network through investment and growth and whether its employment practices reflect a respect for workers' rights," Bahr said.
"Deutsche Telekom, an apparent focus of this provision, is a good employer and a good corporate citizen. It is a very positive example of a company that serves the public interest, one that has sustained a positive relationship with its union workforce," he said. This restrictive proposal would, in fact, deny U.S. consumers and workers the benefits of a quality competitor, Bahr said. He also noted that the German government has indicated that it is committed to the full privatization of the company.
Telecommunications is a global industry, and foreign firms, some with partial government ownership, have acquired U.S. communications companies. Similarly, virtually all major U.S. telecommunications companies have expanded abroad, with overseas operations or direct investments in foreign government controlled communications companies, or companies that previously had been government controlled, he said.
Concerns about national security already have been thoroughly addressed, with checks and safeguards to assure a level playing field for competitive telecommunications and maintain our national security, Bahr noted.
"With these safeguards in place, our lawmakers and policy makers should focus on how better to develop our telecommunications sector and expand job opportunities within it, not restrict the entry of quality competitors like Deutsche Telekom that already meet high standards for the delivery of quality service," he stressed.
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