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May 2005
volume ix, number 5

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Top Story

Verizon or Qwest? The MCI Acquisition Saga Continues

The bidding war for MCI has taken another turn and for Qwest, it seems the third time's a charm. On April 23rd MCI's Board called Qwest's latest offer for the company "superior" to Verizon's current bid. Qwest's offer stands at $30 per share ($16 of it in cash), for a total deal worth $9.75 billion. That's about 30% higher than the Verizon bid that MCI's board has already accepted.

Verizon, however, is still in the driver's seat. The company, seen as a stronger suitor for MCI because of its financial prowess and wireless unit, can submit another offer or wait for an already scheduled vote of MCI's shareholders. The right to terminate the current merger agreement lies with Verizon, not MCI.

Industry buzz suggests that MCI shareholders may not accept Verizon's current offer of $23.10 per share because Verizon just paid Mexican billionaire Carlos Slim Helu $25.73 per share for his 13.4% stake in MCI. When that deal closes, Verizon will be MCI's largest shareholder. Other MCI shareholders, however, are likely to demand the same for their shares that Verizon paid Slim.

Further, some industry analysts question whether Qwest can actually afford the deal it put on the table. The company expects to realize $14 billion in savings over the coming years by merging with MCI. But some analysts suggest the expectation on savings is a bit too optimistic.

For now, the next move is Verizon's. Tele-Tech Updates will keep you informed as the saga continues.

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News & Stuff
 

Verizon Introduces Unlimited Calling Overseas
Verizon long distance customers can now take advantage of the new International Choice Unlimited Country calling plan. Subscribers can choose one of six countries, which include United Kingdom, Germany, France, Italy, Japan and South Korea, and make unlimited calls for a fixed monthly fee.  In addition, subscribers will receive preferred rates on all other international calls.

Rates for the International Choice Unlimited Country plan are $34.95/month for unlimited calls to the U.K and $44.95 for all other countries until September 17, 2005.  After then the price will increase by $5.00. 

 

BellSouth Signs Commercial Agreement with AT&T
In late March, BellSouth and AT&T signed a long-term commercial agreement for wholesale local phone service throughout BellSouth's Southeast region.  With the signing of this agreement, AT&T will continue serving its local customers in the BellSouth region.

 

BellSouth Announces Network VPN Class of Service
BellSouth's Network VPN Class of Service is a new feature which enables enterprise customers to assign higher levels of priority to critical data traffic traveling on BellSouth's managed IP-VPN network.  BellSouth is the first provider to deliver this type of service.

Customers may designate traffic into four different classes: real-time, interactive, priority business and best effort.  "Real-time and interactive classes are suitable for applications that have a low tolerance for delays, such as voice and video.  Priority business and best effort are used to distinguish higher priority business data from non-critical applications such as email and general Web surfing."

For more information on BellSouth's Managed Network NPN and its capabilities please visit http://www.bellsouth.com/business

 

Mississippi Fails to Renew No-Call Law
Up for reauthorization in July 2005, the Mississippi No-call law, which protects Mississippi consumers from telemarketers, was not renewed by Mississippi Legislature.  Beginning July 1st the Public Service Commission will no longer regulate telemarketers.

The cause for not renewing the bill was a proposed "floor amendment in the House to existing legislation that would require the Public Service Commission to regulate ‘false statements against a candidate for public office or a public official.'" Because the amendment isn't considered a telemarketing solicitation call the bill died.

Bo Robinson, Northern District Public Service Commissioner, said, "We will be making a request to Governor Barbour to incorporate our telemarketing authority in the upcoming Legislative Special Session."

 

Verizon Introduces VoiceWing 500
VoiceWing 500, a new Internet-based calling plan, provides 500 minutes of outbound local and domestic long distance calling for $19.95 a month.  The plan also includes unlimited inbound calls and free calls to other VoiceWing subscribers. 

VoiceWing, with faxing capabilities, blocking for up to 20 pre-designated phone numbers and the ability to reject calls from anonymous callers, is available nationwide.  Customers can select from 167 area codes regardless of where they live.

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Product Spotlight

How to Save 43 to 66 Cents Per Subscriber Per Month on Interconnection Costs
A few months ago, Tele-Tech Updates introduced you to our new sister company, Traffic Analysis Services (TAS). TAS provides expert call jurisdiction analysis for wireless and wireline carriers. Our traffic studies give you an accurate determination of local versus toll calls, leading to more informed interconnection agreement negotiations, network routing decisions, and billing rules.

This month, we're offering Tele-Tech Updates readers the newest TAS white paper titled "How to Save 43 to 66 Cents Per Subscriber Per Month on Interconnection Costs -- A discussion on surface-level audits, fear of factors, and the secret decoder ring."

To download this free white paper in PDF format, please visit http://www.traffic-analysis-services.com/white_papers

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