Broadband Expansion Update

            Broadband Expansion Update 

You will recall during bargaining I shared what information we could get on AT&T’s plans for enhancing the competitiveness of its broadband offering, outside our current U-verse footprint (attached August 23, 2012 memo). Much has happened since then and I want to take this opportunity to provide an update on the broadband expansion and what it means for more Union jobs. 

Now you may be asking why do we closely follow these developments? Well, changes in the markets affect jobs. 

According to the FCC’s latest local telephone competition report, end user switched access lines fell to less than 107 million nationwide and traditional landline subscriptions declined 8.8% a year. Meanwhile, as of December 2011, there were 298 million wireless subscriptions in the US and nearly 37 million VoIP subscriptions. VoIP subscriptions grew at a compound annual rate of 19% the previous 3 years. So as customers migrate from legacy technologies to IP and wireless networks we try to learn as much as possible about how our members will be affected and how we can insure access to the jobs of the future.

 By now you’ve probably heard of Project Velocity IP or simply Project VIP. AT&T announced a major effort to expand the offering footprint of IP products and continue to strengthen the wireless network. This will be accomplished by expanding 4G LTE coverage, deeper U-verse and IP broadband deployment and turning up fiber to an additional 1 million business locations. The good news for the Southeast, we will see a large part of the investment. In fact, we have already begun to see positive impacts of the expansion. There are currently 727 technician vacancies in Network Field Operations, 355 Wire Technician vacancies in U-verse Field Operations and we also see forces being shifted from the First Mile group to Construction to help in the build-out. This also has major implications to our Home Solutions call centers. In anticipation of increasing call volumes as living units turn from “red” to “green” for either IPDSL or for U-verse, AT&T has posted 266 jobs for Sales Consultants. 

In summary, we are hopeful this is just the beginning and there is more to come in the way of jobs for our members. 

The telecommunications world is changing, customers’ needs are changing and the technology required to meet these needs are changing as well. We are closely watching these developments and are adapting to take advantage of them, which should equate to more Union jobs for our members. We will continue to have frequent discussions with the Company officials and will keep you updated.

August 23, 2012

AT&T Southeast questions,

I have received several questions regarding the future employment security of STs, OPTs and Wire Techs at AT&T Southeast.

I’ve had conversation with Company leadership about its’ future plans and I wanted to share with you what I know so far. I am encouraged in these discussions about analysis done thus far and seeing a significant investment later this year.

This investment would mean security for all network members and is in addition to the one-year no layoff provision in our tentative agreement. 

The Company has indicated that it is exploring opportunities for enhancing the competitiveness of its broadband offering, outside our current U-verse footprint. 

While the final analysis and decision to invest won’t be completed until this fall, I was told that it looks promising, especially for significant and expanded investment in the Southeast region. Obviously with any expanded investment will come jobs for Service Techs, Outside Plant Techs and Wire Techs. 

I would hope that this provides a bit of information regarding where the Company is in its’ planning process.