MCI Consumer Sales Continue Decline

MCI Inc., the phone company whos at the center of a bidding war between Qwest Communications International Inc. and Verizon Communications Inc., on Friday posted an annual net loss of $3.89 billion and said it expected revenue this year to decline by 10 percent to 14 percent.

Annual revenue at MCI dropped 15 percent to $20.7 billion.

The Ashburn, Va., company posted revenue in the fourth quarter of $5 billion, a fall of 10 percent year-over-year.

Its mass markets division, which includes consumers and very small businesses, generated $1.2 billion in revenue, a 21 percent year-over-year drop. MCI attributed the losses to the impact of do-not-call regulations, reduced advertising and heavy competition from the regional Bells, which include the two companies seeking to acquire MCI: Qwest and Verizon.

Although Qwest yesterday submitted a revised $8 billion bid for MCI, MCI President and CEO Michael Capellas said on a conference call today that Verizon is the right partner to deliver long-term shareholder value, The Associated Press reported.

Still, MCI said in a statement released Thursday: MCIs Board will conduct a thorough review of the Qwest offer, as it has with all previous offers.

Verizon, the biggest U.S. phone company, announced plans last week to acquire MCI in a deal valued at $6.75 billion.

Leave a comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


In our Channel Influencer Awards digital issue, we highlighted eight technologies ready to "take off" in the channel this year. Which two will take off the most?

View Results

Loading ... Loading ...
The ID is: 73313