$14.8 billion in savings & 15,000 job cuts


Qwest says it will show nearly 15 billion in savings and cut 15,000 jobs if its deal with MCI goes through. Reuters says that the job cuts would mean slicing nearly 15 percent to 18 percent of the combined company’s work force. Which ever way you look at it, those are big numbers and even half those numbers could spell trouble for poor unsuspecting employees who are suffering from the past management fiascos at both the companies. In a strange twist, Verizon says Qwest bid for MCI will hurt competition. Ouch … that’s pot calling the kettle black.

In a speech in Florida, Verizon Communications Inc. Executive Vice President Tom Tauke said a Qwest-MCI bid was “not in the public interest” and that Qwest’s weak finances might force it to shut down some MCI networks.

Which essentially means that Verizon will shut down no networks if it gets to keep MCI. Tauke, we are going to hold you to your word.


Frank Muto

I’ll tend to agree, but I feel both AT&T and MCI tried to call a bluff (to the FCC) on hindering competiton by the BOCs. But it looks like (sounds like a duck) the SBC/AT&T merger was moving a long anyway and perhaps was pushed forward with Powell’s early departing from the FCC. MCI could still become a factor for local service if it decides to team up with a non-US telecom. I’ll assume telecom’s in Canada, Europe, South America will have their say in the pending mergers.

Om Malik

well, from a consumer stand point MCI is pretty much inconsequential since it has decided to pull out of that market, the whole game is about the business customer and they are all defecting from MCI anyway.

Frank Muto

Personally, I feel MCI should eventually merge but not with a US Telecom. If Congress, FCC and all the rest involved in these merger proposals get enough information to make an informed decision, they will understand that allowing MCI to merge with any of the Bell’s, is a huge mistake and would certainly hamper any new growth through competition.

The consumers and businesses will see increased costs and less choice for their communication needs, whether it is voice or Internet access.

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