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Verizon Going After MCI

According to the Wall Street Journal, Verizon has informally offered to acquire MCI. MCI's talks with Qwest have reportedly cooled down.

Verizon is trying to compete with SBC, which has recently acquired AT&T for $16 billion. The Baby Bells are doing their best to transform themselves from local phone companies to global telecommunication powerhouses with large business customers. AT&T and MCI although faltering have plenty of enterprise clients that Verizon, Qwest, and SBC want to get their hands on. With the advent of VOIP startups like Vonage and their core telephone business at risk, they need to move up the chain into new markets.