Mich. PSC, Others Back CWA Concerns on Apollo-Lumen

The Communications Workers of America’s "wished-for extra commitments” as a condition for FCC approval of Lumen’s proposed $7.5 billion sale of its ILEC assets in 20 states to Apollo don't “justify imposing unnecessary requirements,” the companies said in replies posted Thursday in docket 21-350 (see 2201190063). Others sought FCC assurance it will impose enforceable commitments on deployment and labor investments. Lumen affiliate Telephone USA Investments, which would be among the transferred assets, sought to have the proposed sale denied (see 2202010044).

Several commenters backed CWA comments seeking more specific information about Apollo’s plans to expand broadband. Plans for fiber to the premises deployment “lack specificity,” said the Michigan Public Service Commission, noting it backs deployment requirements. The proposed deal doesn’t require regulatory approval in Michigan (see 2108200035). The PSC said four ILECs primarily serving rural areas of the state are among those in Lumen’s application.

CWA “throws against the wall an assortment of unsubstantiated and irrelevant statements” about the applicants, Lumen and Apollo said, saying its requested conditions would “intrude deeply and unjustifiably” into Apollo’s Connected Holding’s business operations. Connect Holding plans to invest “over $2 billion” in fiber deployment and copper plant investments, the companies said, and the “entire focus of Connect Holding’s business plan is to extend fiber to Lumen’s predominantly rural footprint.”

Public Knowledge backed CWA’s concerns and said Apollo “either lacks genuine commitment” to its fiber deployment investment or “has over-estimated the speed at which fiber deployment operations are possible” for the new company that will be known as Brightspeed. Lumen and Apollo said Connect Holding “possesses the committed capital and experienced management team to execute” its network improvement plans.

The Michigan PSC sought requirements that “ensure equitable deployment” and that “no customer in the affected ILECs’ service territories lose access.” It backed conditioning copper retirements on a "suitable alternative" and said fixed wireless "should not receive the same treatment as fiber" in FCC-imposed deployment requirements.

Impose “strong minimum residential fiber deployment requirements” that are “equitable,” said the National Digital Inclusion Alliance. The group also backed CWA's request to require Brightspeed to participate in broadband affordability programs, including Lifeline and the Affordable Connectivity Program. Lumen and Apollo noted Connect Holding “publicly stated that it will participate in both programs” and will “continue to pursue” eligible telecom carrier status where it's still required for the Rural Digital Opportunity Fund Phase I auction bids Lumen will transfer (see 2109010076).

Apollo has a “short-term investment horizon," PK said, so the proposed sale should require “firm commitments with enforceable timelines.” PK sought conditions on digital equity. Lumen and Apollo said the sale would “help address the inequalities in broadband deployment in rural areas.”

Any “dissatisfaction CWA has with Lumen’s current service” is “a reason to endorse a new owner, not to bar the door,” Lumen and Apollo said, saying the labor union's "attempt to shoe-horn a condition forbidding copper retirement when wireless is the only substitute" is "perplexing." The companies said CWA's "demands for employment guarantees lack any basis" because the FCC has "routinely dismissed such demands as inappropriate."