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Qwest / MCI / Verizon


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#21 Strom Carlson

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Posted 08 April 2005 - 02:53 PM

More news: Forbes is reporting that Qwest's chances of a successful hostile takeover of MCI are slim at best.

http://www.forbes.co...RD.Missing.html

Speculation abounds that Qwest must either purchase a competitor (Sprint, dammit) or look into the possibility of being taken over by another company (A Qwest/Bellsouth merger might not be entirely out of the question, but it seems unlikely)

#22 BlackRatchet

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Posted 08 April 2005 - 03:28 PM

Speculation abounds that Qwest must either purchase a competitor (Sprint, dammit) or look into the possibility of being taken over by another company (A Qwest/Bellsouth merger might not be entirely out of the question, but it seems unlikely)

Isn't Qwest's market cap a drop in the bucket compared to Sprint's? Like 6bn compared to 100+bn? I CBA to look it up.

Now, Sprint buying Qwest, THEEEEEEERRRREEEE would be an intresting twist. Sprint would suddenly become a much more dominant player in the Telecom industry and there would be 3 big boys on the block (VZ, SBC, and Sprest/Qwint).

The problems with Sprint buying Qwest is that Sprint is tied up in the Nextel Merger, and Regulators might not like the deal. If Qwest has any stake in any Wireless company, they are definitely going to need to sell that. Feds may make Sprint sell off their Wireless or LD division too, although that seems to me to be overkill.

Bellsouth lies dreaming fastly in Atlanta. They are content to stay where they are methinks. We'll see how that strategy plays out.

#23 Strom Carlson

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Posted 08 April 2005 - 04:14 PM

Speculation abounds that Qwest must either purchase a competitor (Sprint, dammit) or look into the possibility of being taken over by another company (A Qwest/Bellsouth merger might not be entirely out of the question, but it seems unlikely)

Isn't Qwest's market cap a drop in the bucket compared to Sprint's? Like 6bn compared to 100+bn? I CBA to look it up.


Sprint is $34.78bn, Qwest is $7.14bn; so yes, Sprint buying Qwest would make more sense.

Now, Sprint buying Qwest, THEEEEEEERRRREEEE would be an intresting twist. Sprint would suddenly become a much more dominant player in the Telecom industry and there would be 3 big boys on the block (VZ, SBC, and Sprest/Qwint).

The problems with Sprint buying Qwest is that Sprint is tied up in the Nextel Merger, and Regulators might not like the deal. If Qwest has any stake in any Wireless company, they are definitely going to need to sell that. Feds may make Sprint sell off their Wireless or LD division too, although that seems to me to be overkill.


If Sprint were to purchase Qwest, I seriusly doubt there would be the need to sell off much if any of their networks. Qwest has no wireless division, and Qwest's long distance network is so insignificant compared to Sprint's that they would probably be allowed to combine the two networks.

Bellsouth lies dreaming fastly in Atlanta. They are content to stay where they are methinks. We'll see how that strategy plays out.


True, Bellsouth does seem fairly content to stay where it is, although their 40% stake in Cingular Wireless is probably doing wonders for their balance sheet...and they have a market cap of $48.98bn :)

#24 Strom Carlson

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Posted 08 April 2005 - 04:38 PM

Just for kicks, here's a summary of curent market cap for all major players in the industry (those listed on US stock exchanges, anyway):

Verizon Communications (VZ) - $97.14B
SBC Communications Inc (SBC) - $78.46B
BellSouth Corp (BLS) - $48.98B
Sprint FON Group (FON) - $34.78B
Nextel Communications Inc (NXTL) - $32.91B
AT&T Corp (T) - $15.39B
Lucent Technologies Inc (LU) - $11.74B
Nortel Networks Corp (NT) - $11.48B
TELUS Corp (TU) - $10.81B
MCI Inc (MCIP) - $8.39B
Qwest Communications International Inc (Q) - $7.14B
Global Crossing Ltd (GLBC) - $327.91M

Note: Verizon Wireless and Cingular Wireless are not listed on the NYSE. Both are joint ventures; Verizon Wireless is 55% owned by Verizon Communications and 45% owned by Vodafone Group PLC; Cingular Wireless is 60% owned by SBC Communications Inc and 40% owned by BellSouth Corp.

#25 Strom Carlson

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Posted 12 April 2005 - 04:43 PM

Verizon submits documents to the SEC and purchases 13% of MCI from one of its largest shareholders for $25.72 per share (11% more than the other shares it will purchase).

http://abcnews.go.co...Story?id=663404

http://www.forbes.co...1327329427.html

#26 riscphree

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Posted 12 April 2005 - 05:08 PM

wow, this is all interesting news. but why the hell dont they just make one big fuckkin company .. oh wait, that'd be against what America is for. Growth. Expansion. And the Benjamins. Although that would be cool, i doubt it will happen in my lifetime .. if ever.

#27 Strom Carlson

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Posted 12 April 2005 - 05:37 PM

Well, it seems that the telecom industry in this country is moving towards becoming dominated by three to five large companies, each with a large local service territory, long distance network, and mobile phone division. Verizon and SBC are moving in this direction; Sprint is actually ahead of the game with this, since they've had all three for over a decade.

In three to seven years, expect to see Qwest merge with someone. My money is on Sprint buying Qwest. Bellsouth lacks a long distance network, but they're in good financial health otherwise; Global Crossing would be a ridiculously cheap buy for Bellsouth Corp, although their network is not as pervasive in this country as the Big Three (AT&T, Sprint, MCI). A BellSouth / Qwest merger might not be entirely out of the question either.

#28 BlackRatchet

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Posted 12 April 2005 - 10:40 PM

wow, this is all interesting news. but why the hell dont they just make one big fuckkin company .. oh wait, that'd be against what America is for. Growth. Expansion. And the Benjamins. Although that would be cool, i doubt it will happen in my lifetime .. if ever.

With telephone networks, the enconomies of scale are such the larger companies work better. Bell System was proof of this. Sadly, it becomes a monopoly and monopolies suck. There is no way the government would let a giant telephone company exist. It really just screws the little guy.

#29 spoekalb

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Posted 23 April 2005 - 02:20 PM

Sorry for digging up an old thread but I just ran across this on the Qwest site:
http://www.qwest.com...tion_3_5_05.pdf
Its a short PDF describing the economic and network benefits of an MCI buyout. Mostly for shareholders though.

#30 natas

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Posted 23 April 2005 - 02:25 PM

this is still so out of hand. i read yesterday that qwest is bidding like 9.75 billion or something now and that some major MCI shareholders are funding the new bid, which puts pressure on MCI to accept it. its so fucking out of control. its never going to be over.

#31 spoekalb

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Posted 02 May 2005 - 07:02 PM

Verizon wins MCI with $8.5 billion offer

http://www.boston.co..._billion_offer/

Verizon Communications Inc. won its 10-week battle for MCI Inc. on Monday, as Qwest Communications International Inc. withdrew its $9.9 billion bid after MCI accepted Verizon's $8.5 billion offer.

#32 Strom Carlson

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Posted 02 May 2005 - 08:10 PM

ah, finally. The way it should be. Now let's see Qwest do the right thing - kick their marketing into high gear and put their long-distance business on equal footing with MCIzon and SBC&T.

#33 BlackRatchet

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Posted 02 May 2005 - 08:58 PM

Now let's see Qwest do the right thing - kick their marketing into high gear and put their long-distance business on equal footing with MCIzon and SBC&T.

With the refreshingly sweet taste of telephony from Sprest!

Just think of the marketing possiblities! Instead of Coke w/Lime and all that nonsense, we can have...

Sprest, w/VoIP. It's like POTS, with VoIP!
Sprest One. One flat rate, all the time
Diet Sprest. Local service only
Sprest Classic. Service off a #5XB.

#34 natas

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Posted 02 May 2005 - 10:04 PM

i was just coming here to post this. just read it on yahoo. fucking finally. im so sick of qwests bullshit.

#35 spoekalb

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Posted 02 May 2005 - 10:10 PM

i was just coming here to post this. just read it on yahoo. fucking finally. im so sick of qwests bullshit.

It would have saved them a lot of money though, per the article.
Saving money is something that Qwest could really use.

Edit:

Qwest also saw the opportunity to cut $14.8 billion in costs through an MCI deal, providing its best chance to reduce its $17 billion in debt and improve its weak cash flow.

Whereas Verizon...

Verizon has said it expects to generate $7 billion in savings and other benefits from the MCI deal and to cut about 7,000 jobs.


Edited by BlakeOPS, 02 May 2005 - 10:13 PM.


#36 Strom Carlson

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Posted 02 May 2005 - 10:23 PM

See, the problem is that Qwest doesn't seem to be targeting potential customers outside of its local service territory. I just looked at their website, and I can get a $20 per month "unlimited" 5000 minute plan on my SBC line. I didn't even know they offered that.

#37 BlackRatchet

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Posted 02 May 2005 - 10:44 PM

See, the problem is that Qwest doesn't seem to be targeting potential customers outside of its local service territory. I just looked at their website, and I can get a $20 per month "unlimited" 5000 minute plan on my SBC line. I didn't even know they offered that.

What in God's name is an Unlimited 5000 minute plan? :D

#38 spoekalb

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Posted 02 May 2005 - 10:57 PM

I was thinking of getting the $20/month long distance but never went with it because I quit my job. How can you get this on your SBC line if it's only available to Qwest local service customers?

Qwest Choice™ Unlimited: Available only to Qwest local service customers for residential use. Not available in AK. Originating calls available in AK with Qwest calling card. $20.00 monthly recurring charge. Plan may not be used for dial-up internet access; other restrictions apply. Contact your Qwest representative for further information at 800-244-1111. Usage may be monitored for compliance with plan restrictions. Customer may be required to demonstrate compliance where monitoring indicates non-compliance or usage exceeds 5000 minutes in any month. Long Distance service provided by Qwest LD Corp. Listed rates cover calls only within the US and to Puerto Rico, Guam, USVI and CNMI and does not include taxes, incremental charges and surcharges. Local service provider may assess a PIC Change Charge for changing long distance carriers. Subject to applicable tariffs and regulations. All rates subject to change.



#39 Strom Carlson

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Posted 02 May 2005 - 11:55 PM

If you select California, you get this:

Qwest Choice™ Unlimited: Available only to non-local Qwest customers for residential use. Not available in AK. Originating calls available in AK with Qwest calling card. $20.00 monthly recurring charge. Plan may not be used for dial-up internet access; other restrictions apply. Contact your Qwest representative for further information at 800-860-2255. Usage may be monitored for compliance with plan restrictions. Customer may be required to demonstrate compliance where monitoring indicates non-compliance or usage exceeds 5000 minutes in any month. Long Distance service provided by Qwest Communications Corporation. Listed rates cover calls only within the US and to Puerto Rico, Guam, USVI and CNMI and does not include taxes, incremental charges and surcharges. Local service provider may assess a PIC Change Charge for changing long distance carriers. Subject to applicable tariffs and regulations. All rates subject to change.



#40 spoekalb

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Posted 03 May 2005 - 12:10 AM

Weird. I wonder if that is to comply with some sort of pro-competition rule from the FCC or other...




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