Vaunted Verizon Needs a Victory

Lest we forget, Qwest (Q Quote) isn't the only telco that has a lot riding on this MCI (MCIP Quote) business.

By now it's well established that Western weakling Qwest would face a grim future without MCI. The company continues to bleed red ink and is burdened with a heavy debt load. Indeed, no less an authority than Verizon chief Ivan Seidenberg has called Qwest a dead-end shop trying to lure MCI by writing a fantasy tale about winning synergies.

But for all its girth and comparative financial security, Verizon (VZ Quote) is stuck in a precarious position of its own. It too operates a struggling local-phone business and holds a hefty chunk of debt. Meanwhile, costs keep soaring and the threat of cheap calling looms just over the horizon.

Taken together, Verizon's problems turn out to resemble -- perhaps in milder form -- Qwest's own. ...