As Inside Towers reported in a news bulletin on Friday, the FCC’s Wireline Competition Bureau approved Verizon’s (NYSE: VZ) $20 billion acquisition of Frontier (NASDAQ: FYBR). Chairman Brendan Carr said the transaction will unleash “billions of dollars in new infrastructure builds in communities across the country—including rural America.”
Carr notes that the agency approval “delivers for America’s tower and telecom crews who do the hard, often gritty work needed to build high-speed networks.” He’s referring to commitments that Verizon has agreed to that were sought by NATE: The Communications Infrastructure Contractors Association. NATE has been working for years to negotiate with carriers on payment terms and working conditions, and other issues related to the broadband buildout.
The association ramped up its efforts this year, Inside Towers reported, with a letter to the industry at its tradeshow this February written by NATE President/CEO Todd Schlekeway. The letter outlined critical issues and urged stakeholders to work together to bring about “meaningful change.” The letter covered “one-sided Master Service Agreements presented on a take it or leave it” basis, “unfair” compensation structures, and “unreasonable” payment terms. Also included were “unfair employment practices” and “uncompensated obligations.”
NATE followed up with a petition to Carr. NATE said at the time that gathering signatures for the petition was the next step in the ongoing effort “to advocate for fair business practices and build a more sustainable future for the wireless industry.” That petition garnered 1,300 signatures, NATE President/CEO Todd Schleckeway told Inside Towers on Friday. It was delivered to Carr at NATE’s recent Capitol Hill Fly-In.
Those efforts are beginning to bear fruit. In an FCC filing posted by Carr on X, Verizon told the Commission the carrier agrees to several changes related to pricing matrices by wireless carriers for tower construction work. Significantly, Verizon agrees to use 30-day payment terms starting July 1 “and to include fair indemnity provisions. Verizon commits to participate in a working session to discuss what fair indemnity provisions would be, including discussing contractor insurance requirements in master service agreements,” the company says in the filing signed by Verizon SVP William Johnson.
Subject to working through any antitrust concerns, Verizon said it agrees to participate in a working group with NATE members to start by July 1 to discuss changes to the terms and conditions of master service agreements. Other changes the carrier plans to make concern issues such as third party vendors and other mandates, and financial audits.
In response to the news, Schleckeway told Inside Towers, “NATE’s leadership has been engaged in active negotiations with Verizon executives focused on addressing a range of issues and reforms that, when implemented, will lead to a more sustainable and healthier environment for the association’s member contractors and their tower technician workforce.” NATE believes these “collaborative and respectful meetings have led to an agreement that will lead to positive, impactful reforms for our contractor member companies related to pricing, Master Service Agreements, current 3rd party vendors and mandates, financial audits, and workforce requirements. In the end, as part of the negotiations process, NATE did not receive every request but that is how negotiations go,” Schleckeway explained.
NATE thanked Carr and his staff as well as Verizon “to help our respective organizations come to terms on this agreement. During his tenure at the FCC, Chairman Carr has invested a lot of time and sweat equity visiting sites and conducting tower climbs with some of America’s best contractor firms and technicians. These tangible experiences have provided the Chairman with a deep understanding of the prominent role that NATE members play daily conducting the tough, gritty work on the frontlines to enable connectivity,” said Schleckeway.
Concerning Verizon, Schleckeway said NATE extends “our appreciation to Verizon for coming to the table and brokering an agreement that will foster a stronger relationship and partnership between the association’s contractor members and those who are fortunate to count Verizon as a customer. NATE looks forward to the next steps in our collaboration with Verizon, which includes establishing the official working group between our respective organizations.”
By Leslie Stimson, Inside Towers Washington Bureau Chief
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