Verizon Business Reveals Integration Progress and Plans for Global Expansion

| Nov 7, 2007 | Telecom Services | Advisory Report

| Analysts: Counse Broders, Brian Washburn, Amy DeCarlo, Cindy Whelan

Summary

It has been nearly two years since MCI and Verizon formed Verizon Business, a global provider of communications services and solutions. During that period, the carrier has made substantial progress in the critical mission of integrating several networks, a multitude of services, tying together back office systems, thousands of employees and two corporate cultures to become one unified global service provider.

Despite the magnitude of this undertaking, the carrier has maintained a clear communications channel with its customers and the overall industry, providing updates and detailed information about its progress. In early November 2007, Verizon Business hosted its annual industry analyst conference where it presented an update on the progress of its integration efforts, and offered a glimpse of its roadmap for 2008.

Recurring themes throughout the conference were network consolidation and optimization to increase efficiencies and reduce costs; and development of managed services and professional services which come together in the concept of a “single stack” that focuses on solution selling and moving up the value chain. Verizon Business noted expansion into emerging markets and the delivery of a global portal for its MNC base. Verizon Business still has a long way to go before its consolidation is considered complete, but the carrier has made major strides in 2007 and has a clearly developed roadmap for future efforts.

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Observations

Counse Broders, Senior Research Director, Telecom Services (North America)
Introduction
Play

Brian Washburn , Research Director, Network Services
- Long-term multi-service switching strategy and prospects for deactivating frame relay and ATM networks
- Capability to put together wireless and wireline bills for cross-service discounting
Play

Amy DeCarlo, Principal Analyst, Internet/Managed Services
- Momentum around managed applications and uptake rates for managed services
- Intention to compete in SaaS space by enabling software companies to provide on-demand applications
Play

Cindy Whelan, Senior Analyst, Wholesale Services
- Enhancing international networks
- Consolidating systems
Play

Takeaways

Brian Washburn
- Simplying systems
- Platform abstracts from networks
Play

Amy DeCarlo
- Expertise gained from acquisition of CyberTrust
Play

Cindy Whelan
- Expanding VoIP services into Europe
- Enhancing collaboration offerings
Play

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