Seidenberg, Ivan G. 1946–

International Directory of Business Biographies, (2005) by Tim Halpern

SHORT-TERM SACRIFICE WINS THE GAME

In both mergers he orchestrated, Seidenberg sacrificed the top job in the merged companies. His choice helped the deals obtain regulatory approval and close more quickly than they would have had there been a power struggle. Said the former FCC chairman William E. Kennard, "He's a master board-room player" ( BusinessWeek , August 4, 2003). After the first merger, Ray Smith, the CEO of Bell Atlantic, took over the newly created company. As for the Bell Atlantic merger with GTE, Seidenberg became co-CEO with Charles R. Lee of GTE. In both cases, an agreement was struck that would guarantee Seidenberg the top position within a specified period of time after the deals were finished. Commenting upon his decision, Seidenberg said, "Sharing responsibility for a three-, four-, or five-year period in the history of the world was not a big deal" ( Fortune , May 31, 2004).

CONSOLIDATION IS THE MARKETING PLAN

The goal of the newly created Verizon was to provide customers with one-stop telecom shopping, where they could get local, long-distance, international, and wireless calls as well as high-speed Internet access. Said Seidenberg, "We're bundle freaks" ( Forbes , April 16, 2001). The bundled approach offered considerable cost savings—instead of enlisting cold callers to sell long distance, the company could pitch long distance to existing customers who called in with questions about their local service. What is more, a customer with bundled service was less likely to switch providers. Still, the strategy had its detractors. Said Scott Kriens, chief executive of Juniper Networks, which made Internet protocol routers, "There are two worldviews competing here. One is that you can be all things to all people. The only problem is that I am unaware of any case in history where that has worked. The execution of that strategy is harder than the declaration" ( Forbes , April 16, 2001).

PATIENCE PAYS OFF

In the spring of 2002 Seidenberg's wait was over, and he became the sole CEO of Verizon. But he was never in a position to rest on his laurels. The rapidly consolidating telecom business faced a new threat: cable. Between 1995 and August 2003 the cable industry spent more than $75 billion to prepare its networks for high-definition television, high-speed Internet access, and telephone service. David N. Watson, executive vice president for marketing at Comcast, the nation's cable leader at the time, said, "Phone companies would have to make hefty investments to catch up. And we won't be standing still" ( BusinessWeek , August 4, 2003).

THE FUTURE IS WIRELESS

Verizon began readying itself for an onslaught of competition, exploiting growth in newer businesses, such as wireless. Seidenberg had a formidable head start, having led a strategy in September 1999 to form Verizon Wireless, a joint venture with Vodafone of Germany. In 2004 Verizon Wireless was the nation's number one wireless provider with more than 26 million mobile phone customers nationwide. Verizon's investments in the technology continued in 2003 as the company outfitted the Manhattan section of New York City with more than one thousand wireless fidelity hotspots. These allowed broadband subscribers near a Verizon telephone booth to access the Internet wirelessly with their laptops. Another project on the horizon was 3G, which would allow customers to make speedy online connections using their mobile phones. By 2004 wireless accounted for 33 percent of Verizon's total revenues, and Seidenberg planned to invest an additional $5 billion into the technology.