The title of a post on TechDirt hit the nail on the head:
Sun To Microsoft: Real Companies Innovate, Not Litigate
That should be the same comment made to Verizon. Litigation and Lobbying have replaced innovation. The Bells haven't come up with a new idea since Bell Labs created DSL, back in the 60's. (Now Bell Labs is owned by Alcatel. Sad, really).
It's the 900 pound gorilla method: Pound the competition into the ground. Not by actually competing, but litigate them to BK.