Wednesday, March 16, 2005
Verizon Testifies to the Senate Judiciary Committee
Ivan Seidenberg, the chairman and CEO of Verizon, testified before the Senate Judiciary Committee yesterday. You will note they are still on about National Security. God I'm getting tired of this. Read the release below.
WASHINGTON - Verizon's acquisition of MCI is "the next logical step" in a changing telecommunications industry and will enable the combined company to compete for large-business, government and critical national security customers, Ivan Seidenberg, the chairman and CEO of Verizon, told the Senate Judiciary Committee today.
"This transaction is about the future," Seidenberg said. "Verizon and MCI will be a national, full-service company with the financial strength and technology resources to deliver the broadband, multi-media world of tomorrow to customers and create economic growth for America today."
Seidenberg also noted that the proposed merger between Verizon and MCI does not eliminate a competitor as it would if Verizon had a national or global network business, for example. Indeed, Seidenberg noted, the combination of Verizon with MCI assures that a strong competitor remains in the marketplace.
Seidenberg pointed out that, with Verizon as a partner, MCI can continue to be a strong competitor to AT&T, which today is the largest provider of services to the largest business and government customers. Verizon plans to invest some $3 billion in MCI's Internet backbone, network and other systems.
In testimony before the Senate Judiciary Committee, Seidenberg said the MCI transaction combines companies with complementary assets.
"Enterprise customers will benefit because we will create a strong, stable and secure strategic partner for national and global businesses as they prepare for the broadband future," he said.
"National security will benefit because we will continue to invest in and strengthen the national and international communications systems, including those used by the departments of Defense and Homeland Security."
Seidenberg assured lawmakers that Verizon's MCI acquisition "does not alter the dynamics that are reshaping the consumer market" and won't have any impact on the current universal service program or its funding.
"Competition from wireless, cable telephony, e-mail, instant messaging and VoIP will continue to drive pricing, with or without this transaction," he said. "The consumer marketplace will continue to become less concentrated over time - with or without this transaction - as new platforms vie for the broadband household."
Seidenberg said the combination of Verizon's local assets and presence among local and regional customers with MCI's IP networks and products and its base of national and global customers will benefit a broad range of consumers.
"Consumers will benefit because MCI's IP network and products, combined with our deployment of fiber directly to homes and businesses, will be the most advanced platform in the country," he told lawmakers.
The Verizon-MCI agreement was announced February 14. An application for its approval was filed with the Federal Communications Commission last Friday. Filings have already been made in 26 states.
See what I mean. He put's forward good arguments on competition, and the growth of wireless and broadband/VoIP plus their own fiber to the home program. But then just can't help himself and brings up the old homeland security crap. Enough already!
