VOIP and Cable:  A double threat to our jobs CWA – 2/2004
What is VOIP? <ul><li>VOIP = Voice over internet protocol. </li></ul><ul><li>Can be used instead of POTS </li></ul><ul><li...
VOIP Quality Good VOIP with quality service = 99.53% POTS = 99.999% Wireless = 97.1% - 98.9% CWA Page
VOIP Offered By <ul><li>Verizon, SBC, Bell South, and Qwest through DSL </li></ul><ul><li>Cable companies through cable mo...
CWA Page
VOIP Gear Replaces Switches “ The opportunity most VOIP investors have been salivating over has been when VOIP gear replac...
4 of 5 CO’s to Close Verizon expects to close 4 out of every 5 central offices!  The central offices that remain will be f...
VOIP Gear vs. Class 5 Switches <ul><li>Class 5 Switches </li></ul><ul><li>Size of refrigerator and up to $10 million </li>...
VOIP Cost Advantage <ul><li>Installation costs 50% less than POTS ($225 vs. $430 for POTS) </li></ul><ul><li>Subscriber pa...
Cable & VOIP Only Companies Have Regulatory Advantage  Over Bells <ul><li>VOIP not regulated  </li></ul><ul><li>Cable mode...
<ul><li>“It is not a telephone service, it is a voice application, completely indistinguishable from any other kind of app...
VOIP Allows Cable to go After Lucrative Voice Market <ul><li>Video Market = $50 billion </li></ul><ul><li>Consumer High Sp...
Cable Ahead of RBOC’s on  VOIP Expansion <ul><li>Cable currently has 2% voice market  (30% in areas heavily marketed) </li...
VOIP Jobs Non-Union <ul><li>Cable industry non-union </li></ul><ul><li>Verizon, SBC, Bell South, and Qwest classify most V...
VOIP Part of Bundling  Strategy for Cable <ul><li>Bundling is key strategy to capture and keep customers. </li></ul><ul><l...
Cable and Bells Both Using Bundling Strategy CWA Page  $149 27% Bell strength 41 Wireless 12% 18 Internet 28% bundle 41 Ca...
Organizing/Bargaining in Cable Tough in Current Environment CWA Page  2,021 25 380 9 1,382 23 Total 115 2 75 1 -- -- Media...
<ul><li>RBOC’s behind on VOIP launch </li></ul><ul><li>RBOC VOIP jobs not union </li></ul><ul><li>Cable VOIP positioned to...
What Can My Local Do? <ul><li>Educate members on VOIP and future nature of jobs </li></ul><ul><li>Fight to make these jobs...
Upcoming SlideShare
Loading in...5
×

Right-click here

311
-1

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
311
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Right-click here

  1. 1. VOIP and Cable: A double threat to our jobs CWA – 2/2004
  2. 2. What is VOIP? <ul><li>VOIP = Voice over internet protocol. </li></ul><ul><li>Can be used instead of POTS </li></ul><ul><li>Voice sent over internet through cable modem or DSL </li></ul><ul><li>Uses regular looking telephone with internet device </li></ul>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 <ul><li>Verizon, SBC, Bell South, and Qwest through DSL </li></ul><ul><li>Cable companies through cable modems </li></ul><ul><li>AT&T </li></ul><ul><li>VOIP only companies (Vonage, 8 x 8) </li></ul><ul><li>Universities, businesses, cities over private networks </li></ul>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, Investor’s Business Daily January 29, 2004 CWA Page
  7. 7. 4 of 5 CO’s 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 for every telco as VOIP likely dominant over next 3-5 years. CWA Page
  8. 8. VOIP Gear vs. Class 5 Switches <ul><li>Class 5 Switches </li></ul><ul><li>Size of refrigerator and up to $10 million </li></ul><ul><li>Call set-up, routing and sending </li></ul><ul><li>Volume: Class 5 switches installed in 25,000 locations in U.S. </li></ul><ul><li>VOIP Gear </li></ul><ul><li>Size of server and router </li></ul><ul><li>Call set-up and routing only. Call sent via high speed internet. </li></ul><ul><li>VOIP runs over existing high speed internet connection. Additional equipment only needs to be in a few centers. </li></ul>CWA Page
  9. 9. VOIP Cost Advantage <ul><li>Installation costs 50% less than POTS ($225 vs. $430 for POTS) </li></ul><ul><li>Subscriber pays no taxes or subscriber fees </li></ul><ul><li>Significantly lower monthly bill than POTS </li></ul><ul><li>Subscriber pays no universal service fund fee </li></ul>CWA Page
  10. 10. Cable & VOIP Only Companies Have Regulatory Advantage Over Bells <ul><li>VOIP not regulated </li></ul><ul><li>Cable modems not regulated </li></ul><ul><li>Existing DSL-Fiber to Premise (FTTP) regulated </li></ul><ul><li>New FTTP probably less regulated </li></ul>CWA Page
  11. 11. <ul><li>“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” </li></ul><ul><li>“If you’re going to say to me that voice over IP is something that needs regulations then you’re going to have to explain to me why e-mail isn’t also.” </li></ul><ul><li>Michael Powell, Chair F.C.C. </li></ul>CWA Page
  12. 12. VOIP Allows Cable to go After Lucrative Voice Market <ul><li>Video Market = $50 billion </li></ul><ul><li>Consumer High Speed Internet = $10 billion </li></ul><ul><li>Voice; Local & LD Market = $220 billion (excluding wireless) </li></ul>2000 } Total Revenue CWA Page
  13. 13. Cable Ahead of RBOC’s on VOIP Expansion <ul><li>Cable currently has 2% voice market (30% in areas heavily marketed) </li></ul><ul><li>Cable expected to have 20% voice market by 2005 </li></ul><ul><li>RBOC’s running small VOIP trials, but slow to deploy DSL and FTTP </li></ul>CWA Page
  14. 14. VOIP Jobs Non-Union <ul><li>Cable industry non-union </li></ul><ul><li>Verizon, SBC, Bell South, and Qwest classify most VOIP related work on routers and file servers as management </li></ul>CWA Page
  15. 15. VOIP Part of Bundling Strategy for Cable <ul><li>Bundling is key strategy to capture and keep customers. </li></ul><ul><li>70% of Verizon’s bundled customers say having the bundle makes them less likely to switch. </li></ul>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 Page 2,021 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 st Contract Bargaining Have Contracts
  18. 18. <ul><li>RBOC’s behind on VOIP launch </li></ul><ul><li>RBOC VOIP jobs not union </li></ul><ul><li>Cable VOIP positioned to take off, grab 20% market </li></ul><ul><li>VOIP & cable not regulated DSL regulated </li></ul><ul><li>CWA members don’t currently have skill set </li></ul><ul><li>Elimination of universal affordable service </li></ul><ul><li>RBOC’s need significant capital expenditure for high speed internet expansion </li></ul><ul><li>CWA must bargain to include this work in our bargaining units </li></ul><ul><li>Real collective bargaining rights for cable workers </li></ul><ul><li>Treat all high speed internet providers the same. Either regulate or deregulate all. </li></ul><ul><li>RBOC’s encourage members to get VOIP training. CWA Nett/Academy provides. </li></ul><ul><li>Mandate high speed internet at affordable price for rural and urban America </li></ul>VOIP Threat Solution Strategy CWA Page
  19. 19. What Can My Local Do? <ul><li>Educate members on VOIP and future nature of jobs </li></ul><ul><li>Fight to make these jobs, at telco’s union job </li></ul><ul><li>Fight for a fair regulatory structure in my state </li></ul><ul><li>Fight to keep universal affordable service </li></ul><ul><li>Promote CWA/Nett Academy to upgrade member skills – www.cwanett.org </li></ul>CWA Page
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×