Future revenue for WorldCom...
Wednesday March 18, 3:11 pm Eastern Time
Company Press Release
Siemens and MCI Announce Five-year Agreement Worth $2.1 Billion
Firms Team to Offer Customers Comprehensive Single-Source Telecom Solutions
SANTA CLARA, Calif./ATLANTA--(BUSINESS WIRE)--March 18, 1998-- Siemens Business Communication Systems,
Inc. and MCI (NASDAQ:MCIC - news) have entered into a five-year, $2.1 billion, innovative solutions agreement that
leverages the expertise and resources of both industry leaders to provide customers with single point of contact, end-to-end
telecommunications solutions, both companies announced today.
Under the terms of the agreement, Siemens will deliver business to MCI, while MCI will conduct joint sales activities. In
addition to outbound long distance voice service, MCI will provide customers with MCI Local Service, MCI Data Services,
MCI Hyperstream Frame Relay, MCI Private Line and MCI Dedicated Internet Services.
Together, they will offer customers compatible products and services, application solutions, cooperative network configurations
and engineering from a single source. Siemens and MCI will also work together to determine the joint solutions most
appropriate to a customer's requirements and business goals and provide discounted joint solutions to address those needs.
''MCI is pleased to extend our relationship with Siemens,'' said Omar Leeman, President, MCI Business Operations. ''This
agreement reinforces our eight-year partnership that provides excellent value and quality communications to thousands of
customers.''
This agreement builds on a series of proven partner marketing projects between the two companies that have generated
revenues in excess of $1 billion to date. Joint products and solutions resulting from the agreement will be available to customers
this year.
''Our mutual customers will experience a new convenience, simplicity and value in turnkey communications solutions,'' stated
George Nolen, senior vice president, sales and services, Siemens Business Communications.
About MCI
MCI, headquartered in Washington, D.C., is a leading provider of local-to-global communication services to business,
government and residential users. The company's fast-growing portfolio of advanced data, Internet and IT services now
accounts for nearly a quarter of MCI's $19.7 billion in annual revenue. MCI operates one of the world's largest and most
advanced digital networks, connecting local markets in the U.S. to more than 280 countries and locations worldwide. MCI has
agreed to merge with WorldCom, one of the world's fastest-growing communications companies. The merger, which is
expected to be completed by mid-1998, will create MCI WorldCom, a company uniquely positioned in the U.S. local and
long-distance markets as well as the global data and Internet markets.
About Siemens Business Communication Systems
From switching systems to networks to the Internet, Siemens Business Communication Systems integrates diverse technologies
into practical applications for major business sectors such as healthcare, education, utilities, retail, public sector, and finance.
The company is the U.S. affiliate of Siemens Private Communication Systems, the world's largest supplier of private
telecommunications systems, with annual sales of approximately $6.3 billion, more than 600,000 customers and over a million
systems installed. Telecommunications and networking accounted for more than 25% of Siemens A.G's sales of $64 billion in
the fiscal year 1996/7. For more information on Siemens Business Communication Systems visit www.siemenscom.com.
Contact:
Siemens Business Communications
Celine Hundt, 408/492-2190
celine.hundt@siemenscom.com
or
MCI Media Relations
Andrew Shepard, 213/337-1756
andrew.shepard@mci.com |
