SW, MCI's bid for ATEL is close at hand, WCOM will unveil their plans to spend $1 billion on June 2nd for Wireless Cable assets. Look for ATEL to be among those assets. Here is the article:
May 20, 1999
Dow Jones Newswires
DJ MCI Worldcom CEO: Debt Concerns Nixed Nextel Purchase
Dow Jones Newswires
By Rebecca Blumenstein
CLINTON, Miss. -- MCI WorldCom Inc. (WCOM) will soon announce plans for how
it will spend an additional $1 billion in capital from the sale of assets.
Bernard J. Ebbers, MCI WorldCom's chief executive, said in an interview that the telecommunications giant will divulge its spending plan to analysts on June 2 in New York. MCI WorldCom's capital budget is already $6.5 billion to $7 billion.
One likely place for the company to invest is wireless cable concerns that MCI Worldcom has been snatching up. The company hopes to use such technology for high-speed access to the Internet. Already MCI WorldCom has purchased one company, CAI Wireless Inc., for approximately $350 million.
Chief Executive Ebbers said the company has already purchased enough companies involved in wireless cable to cover half of the country. His goal, he said before the beginning of MCI Worldcom's annual meeting, is to cover 70%.
"We'll build it out and use it as an access vehicle to small and midsize businesses," said Ebbers, adding that high-use consumers could use it as well. "It's a vehicle to get to the last mile," he said.
MCI Worldcom officials also said they would continue investing in a variety of technologies, including companies that offer digital subscriber lines that can deliver high-speed access to the Internet.
Also, Ebbers said he has no regrets about passing up the chance to buy Nextel Communications Inc. (NXTL), one of the nation's last independent wireless carriers. He said it was not Nextel's purchase price - but the debt he would have to assume to acquire the company that deterred him. "Giving up your financial flexibility is a big issue," Ebbers said. He added that he is confident MCI Worldcom will be able to get wireless capabilities when it needs them.
Before a packed room of cheering shareholders at the company's sparkling new headquarters in Clinton, Miss., Ebbers said MCI Worldcom still has plenty of growth ahead. To date, he pointed out, $100 invested in Worldcom would be worth more than $7,000 today. That performance, he said, is unrivaled in the telecom industry.
Ebbers added that MCI Worldcom's board would consider but not likely approve a stock split at a meeting Thursday.
- Rebecca Blumenstein; 201-938-5099
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