MCI WorldCom back in consumer Net biz
By John Borland
Staff Writer, CNET NEWS.COM
February 3, 1999, 10:30 a.m. PT
MCI WorldCom has launched its consumer Internet service, hoping
to win some market share from leaders America Online and AT&T
WorldNet.
The service is designed both to bring the company back into the consumer Internet
market and to funnel home Net users into MCI WorldCom's core long distance
business.
The service will cost $16.95 for the first 150 hours of use, with each additional hour
at 99 cents. Customers who are also MCI WorldCom long distance subscribers--or
who sign up for traditional phone service--will keep that rate, while other users will
pay a monthly fee of $19.95, according to information posted on the company's Web
site.
Customers will have access to the usual array of personalized start pages, instant
messaging software, and Web site building tools now common among ISPs. The
company also will provide free parental control software.
The company will formally announce the service and release more details later in the
week, a company spokeswoman said.
MCI lost its original consumer Internet service last year, when antitrust regulators
determined that the combined MCI WorldCom would control too much of the
Internet's infrastructure. MCI was forced to sell off its Net backbone and access
service, both of which went to Cable &Wireless, as part of its merger deal.
The company's UUNet subsidiary, however, has remained one of the top
business-focused ISPs. But the company has lacked a
consumer Net presence for months.
Analysts said MCI WorldCom has a daunting task in
front of it trying to recreate its consumer Net service from
scratch.
"They've really fallen by the wayside," said Zia Daniell
Wigder, an industry analyst with Jupiter Communications.
"They definitely have the opportunity to refocus. But
they've fallen behind."
Competitor AT&T has made substantial steps forward in
developing its Internet strategy. As a part of its
acquisition of cable company Tele-Communications
Incorporated, AT&T will take control of cable Net
access company @Home, which recently signed a merger deal with Internet portal
Excite.
AT&T also is reportedly considering merging its WorldNet service into @Home, in
order to keep its Internet products under a single brand. WorldNet currently has
about 1.4 million subscribers, while @Home's high-speed service has about 330,000. |
