MCI acquisition[edit]
In 2005, Verizon began negotiations to purchase long-distance carrier MCI, who accepted the company's initial $6.75 billion offer in February but then received a higher offer from Qwest Communications. Verizon increased its bid to $7.6 billion (or $23.50 a share), which MCI accepted on March 29, 2005.[49] The acquisition gave the company access to MCI's million corporate clients and international holdings, expanding Verizon's presence into global markets.[49][50] As a result, Verizon Business was established as a new division to serve the company's business and government customers.[51] The FCC approved the deal on November 5, 2005, valuing it at $8.5 billion.[52] Verizon's 2006 revenues rose by as much as 20% following the purchase.[53]
2006–2010[edit]
In May 2006, USA Today reported that Verizon, as well as AT&T and BellSouth, had given the National Security Agency landline phone records following the September 11 attacks.[54][55] That same month, a $50 billion lawsuit was filed by two lawyers on behalf of all Verizon subscribers for privacy violations and to prevent the company from releasing additional records without consent or warrant.[54][55] Protesters staged the National Day of Out(R)age due in part to the controversy.[56] In 2007, Verizon stated that it fulfilled only "lawful demands" for information,[57] but also acknowledged surrendering customer information to government agencies without court orders or warrants 720 times between 2005 and 2007.[58]
In February 2007, Verizon added a new service to V Cast called V Cast Mobile TV, which took advantage of Verizon's multiple cellular technologies (such as EV-DO) allowing people with high-end devices to watch TV on their device.[59]
In March 2007, Verizon won a lawsuit against Vonage for patent infringement. The three patents named were filed by Bell Atlantic in 1997, and relate to the conversion of IP addresses into phone numbers, a key technology of Vonage's business.[60] The company was awarded US$58 million in damages and future royalties.[60] Vonage later lost an appeal and was ordered to pay Verizon $120 million.[61]
In May 2007, Verizon acquired Cybertrust, a privately held provider of global information security services.[62]
In September 2007, Verizon Wireless reversed a controversial decision to deny NARAL Pro-Choice America a short code through which the organization could text consumers who had signed up for messaging from the group. The company had initially refused the group access to a code by reserving the right to block "controversial or unsavory" messages.[63]
In November 2007, Verizon opened its networks to third party apps and devices for the first time,[64] a decision that allowed it to participate in the FCC's 2008 700 MHz auction of "open access" spectrum.[64][65] During that auction, the company bid $9.4 billion and won the bulk of national and local licenses for airwaves reaching approximately 469 million people.[65][66] Verizon utilized the increased spectrum for its 4G service.[65]
In June 2008, Verizon Wireless purchased wireless carrier Alltel for $28.1 billion. The acquisition included 13 million customers, which allowed Verizon Wireless to surpass AT&T in number of customers and reach new markets in rural areas.[67]
In October 2010, Verizon Wireless paid $77.8 million in refunds and FCC penalties for overcharging 15 million customers for data services. The company stated the overcharges were accidental and only amounted to a few dollars per customer.[68][69]
On February 4, 2010, 4chan began receiving reports from Verizon Wireless customers that they were having difficulties accessing the site's image boards. Administrators of the site found that only traffic on port 80 to the boards.4chan.org domain was affected, leading them to believe the block was intentional. On February 7, 2010, Verizon Wireless confirmed that 4chan.org was "explicitly blocked"[70] after Verizon's security and external experts detected sweep attacks coming from an IP address associated with the 4chan network. Traffic was restored several days later.[71]
In August 2010, the chairmen of Verizon and Google agreed that network neutrality should be defined and limited.[72][73]
In December 2010, Verizon introduced its 4G LTE network in 38 markets, as well as airports in seven additional cities. The company planned on a three-year continuous expansion of the 4G service.[74]
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