A 10 page paper that begins with a brief introduction to MCI and Verizon, including their last reported annual revenues. Following this introduction, the writer provides an analysis using Porter's five forces model. Under each of the five sections, the writer personalizes the analysis to MCI, Verizon and the merger. For example, when discussing the power of buyers, the writer demonstrates that in one aspect, wireless cellular service, buyers have little influence or power but in other aspects of future Verizon-MCI business, such as the pay-TV market, buyers have more influence. Bibliography lists 9 sources.
Name of Research Paper File: MM12_PGvzmci.rtf
Unformatted Sample Text from the Research Paper:
it operates a leading Internet protocol backbone system" (Hamerly, 2005). The company intentionally moved away from consumer services to business services (Hamerly, 2005). Total sales for MCI in 2003 were
(in millions) $27,315.0 (Hamerly, 2005). Income was more than 15 percent lower than the previous year (Hamerly, 2005). Verizon was born in 2000 when Bell Atlantic bought
GTE (Hamerly, 2005). Verizon passed by AT&T to become the largest telecom provider in the nation (Hamerly, 2005). The company "has nearly 145 million access line equivalents in 29 states
and Washington, DC" (Hamerly, 2005). Verizon Wireless came about through a joint venture between Verizon and Vodafone Group (Hamerly, 2005). With nearly 44 million customers, it is the largest wireless
service provider in the nation (Hamerly, 2005). And, outside the U.S. Verizon affiliates provide service to another 33 million customers (Hamerly, 2005). Besides this, Verizon "operates a national Internet protocol
(IP) network" (Hamerly, 2005). Total revenue for the year ending December 2004 was reported at (in millions) $71,283.0 (Hamerly, 2005). Their net income (in millions) was $7,831.0, reflecting a
growth of 154.5 (Hamerly, 2005). Just two weeks after SBC announced it was acquiring AT&T (the Cingular-AT&T merger), Verizon announced it had made an offer to buy MCI (Kagan, 2005).
The Verizon-MCI deal is valued at $6.7 billion (Yang, 2005). Two of the giants in telecommunications left the corporate scene within two weeks (Yang, 2005). It was a trend that
began with the 1996 Telecommunications Act, which led to long-distance companies competing with Bell companies for the residential telephone service market (Yang, 2005). Scott C. Cleland, a telecom analyst at
Precursor Group, said: This is the end of World War I -- the Bells vs. AT&T and MCI. Now World War II, among the phone, cable, and tech companies, is