Sunday, February 27, 2005

Verizon Speaks Out Against Qwest+MCI Deal

Verizon Communications issued a public statement arguing that the possible combination of Qwest and MCI is not in the public interest.

Tom Tauke, Executive Vice President of Verizon, said a Qwest acquisition of MCI "could result in less investment in MCI's networks and Internet backbone, and harm national security-related customers and the long-term interests of large businesses, government agencies, consumers and shareholders." Tauke noted that Verizon has estimated it will invest approximately $3 billion, primarily in MCI's Internet backbone, network and systems. Tauke argues that cash-strapped Qwest could decide to channel Internet traffic onto its own network and potentially remove a backbone competitor.

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