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UNIVERSITY OF OREGON
BOOKSTORE
Verizon-MCI merger leaves
only four in telecom market
BY BRUCE MEYERSON
THE ASSOCIATED PRESS
NEW YORK — Verizon Commu
nications Inc.’s $6.7 billion takeover
of long-distance provider MCI Inc. is
the latest example of how regulato
ry changes in Washington are con
tinuing to transform the
telephone industry.
A court ruling nearly a year ago
and subsequent decisions by the
Federal Communications Commis
sion were key catalysts for Mon
day’s deal as well as last month’s
$16 billion takeover of AT&T Corp.
by SBC Communications Inc. Those
findings effectively forced long-dis
tance providers on the auction
block by boosting their operating
costs, compounding a multiyear
slide in customers and revenues.
While consumer advocates ex
pressed worry, it’s not clear the loss
of AT&T and MCI as rivals will free
their acquirers to boost prices for
long-distance phone calls. That’s be
cause many consumers and busi
nesses are already taking advantage
of money-saving alternatives — espe
cially cell phones and Internet-based
phone services from cable TV com
panies and others.
“If you’re willing to change the
way you purchase services, there’s a
lot of competition out there” beyond
the local providers, said David
Willis, an industry analyst for the
Meta Group Inc. in Stamford, Conn.
He noted that AT&T and MCI had al
ready stopped competing for new
residential customers.
The recent spate of telecom merg
ers, including December’s deal by
Sprint Corp. to acquire Nextel Com
munications Inc. for $35 billion, will
reduce the industry to four dominant
telephone companies: Verizon, SBC,
BellSouth Corp. and Sprint Nextel. It
also leaves Qwest Communications
International Inc., a Denver-based
Baby Bell whose higher stock-based
bid was rejected by MCI, isolated in a
highly competitive market.
Verizon, the country’s largest re
gional phone company, declined to
say what will become of the MCI
brand. It is a storied name due in
part to its role as the first major ri
val to AT&T’s national long
distance monopoly.
Telecom’s major players scramble to partner-up
A look at three recently announced mergers in the telecommunications industry:
► Verizon Communications
agreed to buy MCI, the nation’s
second largest long-distance
provider
► The deal could result in about
7.000 job cuts from the combined
Verizon-MC! work force of about
250.000 employees
SOURCE: The companies
► SBC Communications agreed to buy
AT&T in a merger that would create one
of the world's largest telecom companies
► Expected elimination of 13,000 jobs,
many through attrition, on top of existing
plans at the two companies to eliminate
at least 12,000 jobs before the merger is
finalized more than a year from now
= Sprint nextel
► Sprint agreed to acquire
Nextel Communications in
a $35 billion deal, mostly in
stock, combining the nation’s
third and fifth largest cell
phone carriers
► Officials declined to
discuss layoff prospects
AP
OF THE
Mind
INSIGHT SEMINARS
UNIVERSITY OF OREGON
PEACE and WAR
o
UNIVERSITY
OF OREGON
(JO professors of history, literature, religion, and philosophy will lead
discussions on topics related to “Peace and War” on Saturday mornings over
coffee in the elegant Autzen Stadium Club Room. These affordable college
level classes for the community are available at $75 each. A “season ticket”
for all six seminars saves $75. Books are available through the UO Bookstore.
Register at 346-3475 or or visit uoinsight.uoregon.edu.
LIFE OF THE MIND
February 26,10:00 a.m.-2:00 p.m.
A one-day seminar designed to resuscitate the reading and thinking habits of
adults. Based on David Denby's book, Great Books, about going back to college
as an adult. A great introduction to the other seminars. $35
THE RAGE OF ACHILLES
March 5,12,19, 26, 9:30 a.m.-noon
The first and still the greatest book about war
is Homer’s Iliad, the epic of warrior culture.
You will love it as an adult, even if you didn’t
as a student. As hair-raising and relevant as
the daily news, this is the foundation of the
West’s thinking about war. $75
CULTURE OF TOLERANCE
April 2, 9,16, 23, 9:30 a.m.-noon
Ornament of the World: How Muslims, lews
and Christians Created a Culture of Tolerance
in Medieval Spain was a surprise bestseller in
2002. What is more timely to learn about than
Islam, and tolerance':1 A highly enjoyable book
about the history and literature of lews and
Muslims in medieval Spain. $75
VIKINGS
April 30, May 7,14, 21, 9:30 a.m.-noon
Njal's Saga is the epic story of Iceland’s great
est lawyer, a man of peace in a culture of vio
lence—an authentic and absorbing portrait of
Viking life written in the 13th century. How
do you break the vicious cycle of revenge,
when it is the law? $75
BAND OF BROTHERS
June 4,11,18, 25, 9:30 a.m.-noon
Shakespeare’s Henry Vpresents the Hundred
Years War. Olivier’s stirring 1945 film ver
sion rallied wartime England, but Branagh’s
1989 film is anti-war. Shakespeare: pro- and
anti-war at the same time? Read the play and
watch the films. $75
WAR AND PEACE
July 9,16,23, 30,9:30 a.m.-noon
It is time—at last—to read Tolstoy’s great
novel IVar and Peace, or read it again. A
novel so good you need to talk about it with
other readers. Tolstoy has great characters
and stories, but is also exploring the nature
and meaning of history and war. $75
MAHATMA GANDHI
August 6,13, 20, 27,9:30 a.m.-noon
Martin Luther King Jr. learned about non
violence from Gandhi. Read Gandhi's auto
biography and the Bhagavad-Gita. What is
nonviolence? What did King learn from Gan
dhi? How to confront a violent world with a
vision of peace. $75
PROMOTING PROTECTION
Nicole Barker | Photographer
Ashley Birch handed out free dental dams, condoms and lubricant on Monday to promote National Condom Day on behalf of the
HIV Alliance. The organization’s new campaign, called "Wrap It Up," was developed by Allen Hall Public Relations.