The Verizon-MCI Merger
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Case Code: BSTR259 Case Length: 19 Pages Period: 2000-07 Pub Date: 2007 Teaching Note: Not Available |
Price: Rs.300 Organization: Verizon, MCI Industry: Telecom and Broadband Countries: US Themes: Mergers, Acquisitions, Strategic Alliances |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
Verizon
From the advent of telephones in the US until the 1980s, under the Bell System, AT&T had monopoly over the US telecom market. The US DoJ filed an antitrust suit against AT&T in 1974, charging that the company had unlawfully monopolized the telecommunications market. This led to the 1984 break up of AT&T in order to do away with the prevailing monopolistic conditions in the American telephone industry...
MCI
MCI Inc. was founded as Microwave Communications Inc. in 1963, with a plan to build a series of microwave relay stations. In 1968, an FCC ruling gave telephone users the right to connect to private communications equipment through AT&T Network. In the same year, an investor from New York, William McGowan (McGowan), met the founders and board of Microwave Communications, and agreed to infuse capital into the business...
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