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cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

Why they went with a RMT

quote:
Verizon’s desire to avoid paying taxes apparently was so great that it did not auction the properties or entertain other offers from more financially qualified firms.
Make money and lose debt, or make money and keep depth. Geez. I wonder why they went the way they went.

Verizon's a company...a for-profit publicly traded company. They have one goal in life, to make money for their shareholders. EVERY SINGLE THING they do ultimately goes back to the question "does this help make a profit for the shareholder?"

If they are looking at divesting a large chunk of their territory, they really aren't all that worried about what happens to the customers once they are out of the picture. The success or failure of whoever buys the lines from them really isn't Verizon's concern. If they can make more money by doing a RMT and offloading their debt, then they are going to go that route rather then auctioning it off piecemeal. If they can make more auctioning it off peacemeal rather then a RMT, then they go that route.

Does it suck for customers? Probably if the buying company fails. If it's a big enough deal, the PUC, FCC, FTC, SEC, IRS, or the FBI and CIA (did I miss any TLA?) should have objected or closed the ability to do the RMT. But the fact is that all those groups in one way or another approved it or at least didn't object.

dogo88

join:2001-09-24
Old Bridge, NJ
Exactly. Finally someone who get's it.