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    Did Verizon's purchase of GTE lead to their high debt?

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    "logical reason for their high debt. Several years back, Verizon bought GTE and some other rural telephone companies. The rural phone business is more expensive to operate because of the lower population density. It takes a lot more cable and additional equipment to serve homes spaced out widely than it does for the ultimate density--an apartment complex. This is why, if you look at your phone bill, there is a tax called the Universal Service Fund (USF), which was designed to supplement telco's expenses in delivering services to rural areas" Explain

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    I would have to agree with this statement. It does make logical sense that one reason why Verizon has such large amounts of debt is because of their purchase of GTE and because of the higher costs involved in maintaining service levels to rural customers. I have dug a little deeper into Verizon's situation and have come up with the following information which may explain why they have such high levels of debt. According to Verizon's latest SEC financial filings, ...

    Solution Summary

    The expert determines if Verizon's purchases GTE lead to their high debt.