NEW YORK and ASHBURN, Va., Oct. 27 -- Verizon Communications Inc. and MCI Inc. today said they have received a consent decree from the US Department of Justice (DOJ) for Verizon's acquisition of MCI. The transaction has already cleared most state and international regulatory hurdles, and the Federal Communications Commission is scheduled to vote on the merger on Friday, Oct. 28. If approved by the FCC, the companies expect the deal to close later this year or early in 2006.
The DOJ filed a consent decree for approval by a federal court that includes stipulations agreed to by Verizon and MCI. Under the decree, Verizon and MCI will lease dark (unused) fiber connections to 356 buildings in several states in the Verizon footprint on the East Coast. Fiber currently being used by MCI to serve its customers will not be affected.
The consent decree follows an eight-month study by the DOJ staff of every aspect of the Verizon-MCI merger, which was first announced on Feb. 14, 2005. In a written statement, Verizon stated that it, MCI and other parties supplied millions of documents and volumes of market data to the DOJ staff.
"The consent decree will result in no disruption to MCI customers. We are eager to begin offering the benefits of this new combination to customers as soon as possible." said John Thorne, Verizon senior vice president and deputy general counsel, in a written statement.
Earlier this week, Verizon announced the leadership team for the new business unit that will encompass MCI and Verizon's Enterprise Solutions Group. Business unit President-elect John Killian said the senior leadership team will include: Wayne Huyard, currently MCI's president of US sales and services, as executive vice president, global sales and service; Ed McGuinness, currently senior vice president, marketing for Verizon Enterprise Solutions Group, as senior vice president and chief marketing officer; Fred Briggs, currently MCI president of operations and technology, as executive vice president, network operations and technology; Terri Dean, now president of Verizon Connected Solutions Inc., as senior vice president, communications; Randy Milch, Verizon Domestic Telcom's senior vice president and deputy general counsel, as senior vice president, legal and external affairs; Fran Shammo, currently president of the West area for Verizon Wireless, as senior vice president and CFO; Judy Spitz, currently Verizon's senior vice president, IT network systems, as senior vice president and chief information officer; and Bob Toohey, currently Verizon's vice president of Total Rewards, as senior vice president, human resources. All appointments are effective following final approval of the merger.
Verizon said it expects to announce the name of the new business unit in a few weeks. The unit will provide services to large business and government customers, as well as MCI's current customer base.
For more information, visit: www.verizon.com