In early May of 2005, the Ashburn, Virginia based telecom company MCI accepted an $8.4 billion merger offer with Verizon.

Verizon and MCI

Verizon is the dominant local exchange carrier in its home territory along with being the number one long-distance carrier and wireless service provider in most of the markets in which it operates. MCI is the number two local exchange carrier in most of Verizon's service territory and is number one in the territories where Verizon is number two. The Consumer Federation of America (CFA) predicted that the merger would have a profoundly negative effect for the consumer as the merger created an anticompetitive climate that was sure to drive prices upward.

Verizon Overview

Verizon Communications Inc. has over $71 billion in annual revenues as it is one of the world’s largest communication service providers. Domestic Telecom provides Verizon customers with wireline and other telecommunications services, including broadband. Verizon Wireless serves 45.5 million voice and data customers across America. Verizon is made up of 214,000 employees that are dispersed throughout Verizon’s four business units that are named Domestic Telecom, Verizon Wireless, Information Services, and International.

Verizon History

Verizon is based out of New York and was formed on June 30, 2000 when the Bell Atlantic Corporation merged with the GTE Corporation. Prior to the merger, GTE was one of the world's largest telecommunications companies, with its 1999 yearly revenues amounting to more than $25 billion. Verizon’s company name comes from the combination of the Latin word veritas which translates to mean certainty and reliability and the word horizon which symbolizes the company’s forward looking philosophy.

MCI Overview

MCI was founded in 1968 and is one of the world’s most prominent communications providers. Their internet service spans six continents, over 140 countries, over 2,800 cities, and over 4,500 Points of Presence (PoPs). MCI’s IP network provides service to more than 2.2 million dial modems. MCI owns and operates over 2,400 ATM, frame relay and voice switches, as well as 130 data centers in twenty-two countries on five continents. MCI provides communication services to thousands of businesses worldwide including the United States Department of Defense and Nasdaq stock exchange.