Q: Denver-based Qwest and Verizon were in a bidding war last year for MCI. Why was it important for Verizon to win?
A: The importance to us is we were already on a path of building a more focused business around large business and government. The realization to us was it would take a long time to do it from an organic standpoint, and with the opportunity of MCI coming out of bankruptcy and some of the other consolidation that was going on – it was a company that had a great set of assets. We believe it’s positioned us to have the leading IP network in the world. We’re in 150 different countries, 2,700 cities. So it really positioned us very well and jump-started us.
Q: How much of Verizon Business came from Verizon and how much from MCI?
A: It’s about 85 percent from MCI and about 15 percent from Verizon. Verizon Business is one of three units within Verizon. We have the Verizon core telephone company, we have Verizon Wireless, and then we have Verizon Business. Verizon Business is a little over a $20 billion revenue stream with about 35,000 employees.
Q: Verizon Business is based in New Jersey. What are the reasons for your recent visit to Colorado?
A: First and foremost to come out and see our employees here. We have about 1,600 employees in Colorado, 600 in Denver. The second reason is we were also seeing some customers.
Q: The local workforce dropped to 1,600 from more than 2,000 before the merger. Are there any plans to bring those jobs back?
A: The plan is to keep it about the same level.
Q: Is there a special focus for the workforce in Colorado?
A: We have a disproportionate focus here of IT resources – software developers and programmers.
Q: What have been some of the challenges of integrating the two companies?
A: Any time you do an acquisition like this, there are synergies from putting the two companies together. One of the big synergies here was there was a lot of long-distance traffic that originated from Verizon Wireless and Verizon Telecom that was going off on other carrier networks. We moved all of that traffic onto the Verizon Business network – the former MCI network. Another area where we’re doing a lot of work is integrating systems. There were several different billing systems, several different support systems. … That was a challenge and will be for a while.
Q: How much is Verizon Business spending on upgrading its global network?
A: We’re spending, this year, about $1.7 billion in terms of upgrade of the network. We haven’t provided any numbers yet on ’07. A substantial investment is being made in the Verizon Business network.
Q: Who are your top competitors?
A: If you said my top two or three globally, clearly AT&T would be there because AT&T has been in the enterprise business and has the network. Also British Telekom and a company called Orange, which is owned by France Telecom. In the States, I’d also put, from time to time, Sprint.
Q: Both Broomfield-based Level 3 and Qwest are working to grow their enterprise businesses as well. What are your thoughts about them?
A: We see them in the marketplace from time to time. I’d say they’re both good companies. But (they’re) not ones I run into regularly with the target customers that we have.
Q: What are the main industries you’re targeting?
A: We’re really targeting the global 2000 accounts. We’re a little bit agnostic as to industry, although I have a very big practice with financial-services and technology companies. But we serve them all.
Q: After beginning your career in the financial sector, you joined the telecommunications industry with New England Telecom in March 1979. Was there a particular reason for the move?
A: First, they were looking for CPAs at the time. Secondly, I had a family heritage in the business. My father and mother had both worked for the company. They weren’t working for the company when I joined. They had been out of the company for several years. So I had some family roots.
Edited for space and clarity from an interview by staff writer Andy Vuong.
