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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: laleh who wrote (276)	11/5/1997 12:25:00 PM
From: Rashe W. Stephens III	Respond to of 6846

Worldcom bought MFS Communications along with its Internet arm UUNET. MFS is an integral piece in Worldcom's strategy to provide end-to-end communications to corporate customers in the US and abroad. MFS' extensive fiber networks in major metropolitan areas allow them to "bypass" the RBOCs and GTE. Perhaps more importantly, they can offer lucrative switched services using their own facilities after installing a central office switch. MFS has developed into a powerhouse in the high-end business segments of financial services, healthcare, and government. Major corporations may use them as their primary service or as backup to LEC services. Worldcom is banking on the integration of MFS' fiber routes in Tier I cities with Brooks Fiber's in Tier II & III cities to create enormous synergies. This is one of the aspects that Worldcom is touting to MCI-- a strong foothold in the local business market. Presumably, a merger would create additional synergies with the integration of MCImetro facilities. Despite what MFS and other CLECs have deployed locally, there is an enormous demand for long-haul fiber. This is where QWEST will dominate.