BT and MCI ready to launch global VPN joint venture

Washington, D.C.

BT and MCI Communications Corp. are set to unleash a "best of breed" set of virtual private network services that will likely include global versions of MCI's Virtual Network (Vnet) and HyperStream offerings, along with an international videoconferencing service.

Pending approvals by the Department of Justice and regulators in the U.K., BT and MCI will become distributors for services developed by Newco, an international virtual private network joint venture the two set up when BT purchased 20% of MCI last June.

Assuming permission is granted, the Newco launch will happen very soon, according to Howard Taylor, MCI's vice president of marketing for multinational accounts. The launch will feature a schedule for services to be rolled out this year and next, he said, which MCI will market under the Global MCI brand name.

Taylor declined to discuss details of the Newco launch. But Berge Ayvazian, vice president of communications research and consulting with the Boston consultancy The Yankee Group, said...