Chicago Tribune: MCI WorldCom Awaits Wireless Opportunity
By Jon Van
Tribune Staff Writer
January 18, 1999
Even though MCI WorldCom Inc. dropped
out of the bidding for AirTouch
Communications Inc. last week, it will be in
the market for buying a major wireless phone
network at some point.
MCI WorldCom is America's second-largest
long-distance company with more local
connections to its customers than anyone
else, but all the wireless services it offers
these days it buys from others and resells to
its customers.
"We know that we must invest in our own
wireless system," said Ron McMurtrie, MCI
vice-president of product marketing on a
Chicago visit. "AirTouch wasn't right, but
when we find something that makes
economic sense, we'll buy it."
Right now MCI is pushing its latest product
designed for business customers that
provides voice and data connections at
discounts of up to 25 percent. The firm is
trying to lock in as many customers it can
before some local Bell companies get federal
permission to offer long-distance service,
which McMurtrie expects may happen
within a year or 18 months.
Since the merger of MCI and WorldCom,
the combined firm now has facilities in place
to reach about 75 percent of North
American-based businesses with its own
network, McMurtrie said.
By carrying voice and data traffic on its own
network, MCI WorldCom can assure the
quality and provide its customers with the
ability to track its traffic on the Internet as
well as get its bills and pay them
electronically.
"The merger gave us the critical mass we
need to serve customers on our own
equipment end-to-end, even those with
overseas offices," said McMurtrie. "We're
trying to lock in our customers by setting a
very high performance benchmark."
Wireless service has become a critical
component for any company that aspires to
be a full service provider, and depending
upon others to fill that need runs counter to
the long-term strategy at MCI WorldCom.
Another component is high-speed data
connections over DSL, or digital subscriber
lines, which many companies are beginning
to offer this year.
"We don't have a DSL product yet," said
McMurtrie, "but we do have plans. We'll be
making some announcements on DSL later
this year."
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