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A merger between upstart WorldCom and MCI would revamp MCI's plans for the New York market and intensify an already heated battle for business customers.
WorldCom Inc. executives, after launching their unexpected $30 billion bid, said that they would refocus MCI's efforts on businesses. MCI Communications had been the one large telecommunications company that had planned to target residential customers.
The move could trigger price wars and bring increased pressure on incumbent Bell Atlantic in the market where it is most vulnerable.
"They are going to be very well-positioned to go after businesses," says Boyd Peterson of Boston's Yankee Group.
Powerful combo
Nationally, the $25 billion combination would bring to the market a long-distance player with local networks in 86 markets and 60% of the country's Internet traffic. It would marry an aggressive but little-known Jackson, Miss.-based upstart with MCI's ubiquitous brand name.
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