Verizon buy speeds telecom M&A trend
Verizon Communications Inc. of New York last week said it would buy MCI Communications Corp. for $6.7 billion in cash, equity and a special dividend payment.
The purchase is the latest of several telecommunications merger announcements: On Jan. 31, SBC Communications Inc. of San Antonio said it would buy AT&T Corp. for $16 billion. And in December, Sprint Corp. said it would buy Nextel Communications Inc., Reston, Va., for $35 billion.
The buys will reduce the number of carriers in the government market, but let surviving companies offer more comprehensive services to federal customers, telecom analysts predicted.