Right-click here

Embed Size (px)

Text of Right-click here

  1. 1. VOIP and Cable:A double threat to our jobs CWA 2/2004
  2. 2. What is VOIP?
    • VOIP = Voice over internet protocol.
    • Can be used instead of POTS
    • Voice sent over internet through cable modem or DSL
    • Uses regular looking telephone with internet device
    CWA Page
  3. 3. VOIP Quality Good VOIP with quality service = 99.53% POTS = 99.999% Wireless = 97.1% - 98.9% CWA Page
  4. 4. VOIP Offered By
    • Verizon, SBC, Bell South, and Qwest through DSL
    • Cable companies through cable modems
    • AT&T
    • VOIP only companies (Vonage, 8 x 8)
    • Universities, businesses, cities over private networks
    CWA Page
  5. 5. CWA Page
  6. 6. VOIP Gear Replaces Switches The opportunity most VOIP investors have been salivating over has been when VOIP gear replaces voice switches that connect right to customers. Instead of buying new class 5 switches AT&T, Verizon and the rest will use VOIP gear to connect directly to customers. Mike Angell, Investors Business Daily January 29, 2004 CWA Page
  7. 7. 4 of 5 COs to Close Verizon expects to close 4 out of every 5 central offices!The central offices that remain will be filled with computers, servers, and routers. Similar consolidation likely foreverytelco as VOIP likely dominant over next 3-5 years. CWA Page
  8. 8. VOIP Gear vs. Class 5 Switches
    • Class 5 Switches
    • Size of refrigerator and up to $10 million
    • Call set-up, routing and sending
    • Volume:Class 5 switches installed in 25,000 locations in U.S.
    • VOIP Gear
    • Size of server and router
    • Call set-up and routing only. Call sent via high speed internet.
    • VOIP runs over existing high speed internet connection.Additional equipment only needs to be in a few centers.
    CWA Page
  9. 9. VOIP Cost Advantage
    • Installation costs 50% less than POTS ($225 vs. $430 for POTS)
    • Subscriber pays no taxes or subscriber fees
    • Significantly lower monthly bill than POTS
    • Subscriber pays no universal service fund fee
    CWA Page
  10. 10. Cable & VOIP Only Companies Have Regulatory AdvantageOver Bells
    • VOIP not regulated
    • Cable modems not regulated
    • Existing DSL-Fiber to Premise (FTTP) regulated
    • New FTTP probably less regulated
    CWA Page
  11. 11.
    • It is not a telephone service, it is a voice application, completely indistinguishable from any other kind of application that can run on an IP network
    • If youre going to say to me that voice over IP is something that needs regulations then youre going to have to explain to me why e-mail isnt also.
    • Michael Powell, Chair F.C.C.
    CWA Page
  12. 12. VOIP Allows Cable to go After Lucrative Voice Market
    • Video Market = $50 billion
    • Consumer High Speed Internet = $10 billion
    • Voice; Local & LD Market = $220 billion (excluding wireless)
    2000 } Total Revenue CWA Page
  13. 13. Cable Ahead of RBOCs onVOIP Expansion
    • Cable currently has 2% voice market(30% in areas heavily marketed)
    • Cable expected to have 20% voice market by 2005
    • RBOCs running small VOIP trials, but slow to deploy DSL and FTTP
    CWA Page
  14. 14. VOIP Jobs Non-Union
    • Cable industry non-union
    • Verizon, SBC, Bell South, and Qwest classify most VOIP related work on routers and file servers as management
    CWA Page
  15. 15. VOIP Part of BundlingStrategy for Cable
    • Bundling is key strategy to capture and keep customers.
    • 70% of Verizons bundled customers say having the bundle makes them less likely to switch.
    CWA Page
  16. 16. Cable and Bells Both Using Bundling Strategy CWA Page$149 27% Bell strength 41 Wireless 12% 18 Internet 28% bundle 41 Cable/Satellite 7% offer this 10 Long Distance 2% Cable can 2 Local Toll 25% $ 37 Local Phone % of Total Consumer Spending Cost Service
  17. 17. Organizing/Bargaining in Cable Tough in Current Environment CWA Page2,021 25 380 9 1,382 23 Total 115 2 75 1 -- -- MediaCom 11 1 12 1 42 2 Bresnan -- -- -- -- 11 1 Northland 15 1 -- -- 41 1 Charter 130 6 50 3 381 6 Adelphia 1, 750 15 243 4 907 13 Comcast Mem Units Mem Units Mem Units Decertifications In 1 stContract Bargaining Have Contracts
  18. 18.
    • RBOCs behind on VOIP launch
    • RBOC VOIP jobs not union
    • Cable VOIP positioned to take off, grab 20% market
    • VOIP & cable not regulated DSL regulated
    • CWA members dont currently have skill set
    • Elimination of universal affordable service
    • RBOCs need significant capital expenditure for high speed internet expansion
    • CWA must bargain to include this work in our bargaining units
    • Real collective bargaining rights for cable workers
    • Treat all high speed internet providers the same.Either regulate or deregulate all.
    • RBOCs encourage members to get VOIP training.CWA Nett/Academy provides.
    • Mandate high speed internet at affordable price for rural and urban America
    VOIP Threat Solution Strategy CWA Page
  19. 19. What Can My Local Do?
    • Educate members on VOIP and future nature of jobs
    • Fight to make these jobs, at telcos union job
    • Fight for a fair regulatory structure in my state
    • Fight to keep universal affordable service
    • Promote CWA/Nett Academy to upgrade member skills www.cwanett.org
    CWA Page