Greg Galitzine : Greg Galitzine's VoIP Authority Blog
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Verizon/MCI Commentary Part II

February 15, 2005

Michael J Thurston, Sr., is Vice President, Director of Operations at North American Communications, INC and he is a member of the Society of Telecommunications Consultants. Here’s his take on the Verizon/MCI deal:


Verizon’s Acquisition of MCI

One Consultant's View


I believe Verizon acquiring MCI will be a great step for customer service. This has nothing to do with the everyday user, but this will have a great impact in Corporate and Government agencies. For any consultant that has spent hours trying to explain to these vendors their responsibility to the demarcation point, bringing the old Bell System guys back into the business should solve this.

Convergence of a Different Kind

February 15, 2005

Sony Ericsson is dusting off the Walkman, adding dial tone, and setting its sights on the mobile music market. I was but a young lad when I got my first Walkman. It was awesome. I should have bought stock in Duracell at the time too.

Verizon/MCI Commentary

February 15, 2005

As regards any major news impacting our industry, I try to reach out and solicit commentary from insiders and people who make a living thinking about telecom. Mike McCue of Schooley Mitchell Telecom Consultants is a member of the Society of Telecommunications Consultants. Here's what he had to say on the announced Verizon/MCI deal and its effect on VoIP:

During a recent client engagement I contacted Verizon to order some service changes.  During that process and the discussion about contract options, I asked about Verizon's IP Centrex plans and if their current contract would allow a mid-term transition to that service.  The customer service rep assured me that their VOIP service was not a reliable product and should be avoided.  Further discussion of the service made clear that she did not have any experience or training on VOIP products.

Will the acquisition of MCI by Verizon impact VOIP?  I expect the current trend to continue; profitable Telco's will offer it as a me-too product with limited availability and even more limited sales/support capability.  Meanwhile the greenfield companies (Vonage, Packet 8, VoicePulse, etc.) will build and refine this market then be acquired in a future consolidation.

Verizon Sends MCI A Valentine

February 14, 2005

Well, I guess it’s official. Verizon has acquired MCI for $4.8 billion in equity and $488 million in cash (total: $5.3 billion). The transaction also encompasses a special dividend payable to MCI shareholders, bringing the total to $6.7 billion for the number 2 long-distance carrier.

The main play here is Verizon expanding into the enterprise market and keeping pace with sibling SBC, who recently purchased AT&T.

Teleo Intros Personal, Portable VoIP Service

February 14, 2005

Teleo, a San Francisco-based VoIP provider, unveiled its new software and service at the DEMO@15! Conference in Scottsdale, AZ. The software targets mobile professionals and those who rely on cell phones and e-mail as primary communication vehicles.

Teleo is a personal, portable VoIP system that lets customers use their cell phone, regular phone, or PC to receive VoIP calls.

On VoIP Mobility & Security

February 10, 2005

I’ve just returned from the Voicecon trade show, where I met with a number of vendors serving the enterprise VoIP space. Among the many themes discussed this week, two seem to bubble up to the top: mobility and security.

In an earlier post, I wrote about the formation of the VOIPSA, or VoIP Security Alliance. In the first week of its existence, the total number of member companies has doubled to 50 and over 1,500 people have signed on to the mailing list.

VoIP in France???

February 8, 2005

VoIP Security Alliance Seeks To Identify, Address VoIP Risks

February 7, 2005

TippingPoint announced today that it has established the VoIP Security Alliance (VOIPSA) in conjunction with a group of VoIP vendors, providers, security researchers, and thought leaders. The goal of the alliance is to discover and reduce VoIP security risks. Some of the charter members include 3Com , Alcatel , Avaya, Codenomicon, Columbia University, Enterasys, Ernst and Young’s Guiliani Advanced Security Center, Insightix , NetCentrex, Qualys, Sourcefire, Southern Methodist University, SecureLogix, Spirent, Symantec , the SANS Institute and Tenable Network Security.

A complete list of members can be accessed at the VOIPSA Web site.

Cato Institute Offers Views on Who Killed Telecom

February 4, 2005

I just came across a release announcing a new Policy report from the Cato Institute.

I’ve come to learn that no matter how innocent my motives in simply shedding light on a particular report covering our industry, I stand equal chance of being taken for a liberal, a conservative, a leftie, a rightie, a commie, a fascist, a pink, a punk… whatever the prevailing opposite happens to be that day.

I’ll get over it somehow. Thick skin, you know.

Qwest Rings Up MCI. Is Verizon on Call Waiting?

February 3, 2005

The Wall St. Journal is reporting that Qwest is in talks to buy MCI for about $6.3 billion, which would make the second major telecom deal in less than a week, hot on the heels of the AT&T/SBC deal, which I’ve touched on "a little bit" in the past few days.

 Everyone in the world is reporting this news, so take your pick whose version you want to read.

MCI has some obvious assets that make it an attractive target. It has an impressive roster of clients, as well as a huge global network that is the envy of many. 

So attractive are these assets that Verizon is in line to talk with MCI as well.

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