Verizon unwraps new business unit

Verizon is taking the wraps off its new Verizon Business unit, announcing both a global integrated product portfolio and new integrated wireless/wireline service offerings.

The new unit, a combination of MCI and Verizon Enterprise Solutions, will hit the ground running and avoid confusion associated with many mergers, claimed John Killian, presidenet of Verizon Business, at an afternoon press teleconference.

"We put a stake in the ground from day one," he said "We don't want confusion with our customers, we want to differentiate ourselves in that way."

To that end, the company is working through the planned force reduction of 7000 employees over the next couple of years, he said, and hoping to grow the business in the meantime to prevent some layoffs. Initially, most business customers will be working with their existing former MCI account teams. Where there is overlap between MCI and Verizon, both account reps are currently working with customers, for the time being.

As part of the launch, Verizon Business announced its first new productsThe announcements, moving quickly to combine MCI's business acumen with its industry leading wireless unit.

The integrated wireline/wireless offerings combine Verizon Wireless’ EV-DO broadband data with the former MCI’s remote access platform to create a secure means of enabling workers to access corporate data networks and the Internet while traveling or working away from the office. Verizon is also making the broadband data service it has launched in metro areas nationwide available for business continuity purposes, to allow companies to continue operations in the event of commercial power failures or disasters which knock out the landline network.

Two key former MCI executives -- Wayne Huyard and Fred Briggs are joining Verizon Business as executive vice presidents of global sales and service and of network operations and technology, respectively.

Huyard promised Verizon would compete from day one in cities globally and across the U.S., taking on AT&T and all other comers.

The global launch of Verizon Business in 75 countries will include a major advertising campaign as Verizon seeks to establish its brand around the world. The new unit includes Verizon Enterprise Solutions Group, known best on the East Coast but also across the U.S., with MCI’s global solutions organization, which served much of the Fortune 500 and the U.S. federal government, covering most of the Fortune 500--including Boeing Co. and McDonald's Corp.--and deep experience serving the federal government.

MCI’s brand name is expected to disappear relatively quickly, for the second time in the company’s history. MCI became part of WorldCom when those two companies merged, and only resumed its former moniker after a fraud and accounting scandal forced Worldcom into bankruptcy.

In the U.S., Verizon is already well known through its Verizon Wireless “Can you hear me now?” commercials, although the company isn’t as well known globally.

Briggs said in the press call that integration of the voice networks is already underway and that data network integration could likely be accomplished by the end of the year as well. He conceded that billing is the more difficult integration task.

B"illing is a challenge throughout the industry," he said. "In April we are going to deliver what is called a national summary statment -- customers can see one summary statement. In October, we will do common electronic billing for our customers. And by end of ’07 we will converge on five strategic billing engines – high end, low end, wholesale, etc."