To: Anthony Wong who wrote (3834 ) 1/27/1999 6:35:00 PM From: Mazman Respond to of 11568
MCI WorldCom Finds Local Rhythm Interactive Week January 27, 1999 3:31 PM ET By Carol Wilson zdnet.com MCI WorldCom stole the march on its archrival AT&T yesterday, announcing a new alliance with competitive carrier Rhythms NetConnections only hours before AT&T was to announce its integrated service plan. By hooking up with Rhythms, one of a handful of competitive local exchange carriers that is building out networks using Digital Subscriber Line technology, MCI immediately expanded its reach into small to midsized businesses in the cities Rhythms serves, including the Chicago, Los Angeles, San Diego and San Francisco Bay areas. MCI WorldCom will invest $30 million to acquire a minority stake in Rhythms, and the two companies will do joint development work as well, focusing on combining Digital Subscriber Line-based data access with voice services - either packet-based voice or circuit switched voice - onto a single copper phone line, said Jim DeMerlis, vice president of data and enterprise services for MCI WorldCom. But the real advantage of the link is the access it will give MCI to small to midsized business customers who can't cost-effectively be reached by the fiber-optic ring networks built by MFS Communications, now part of MCI WorldCom. Like Sprint and AT&T, MCI has said it will use any means to reach such customers but would like to avoid reselling incumbent phone lines. As a data CLEC, Rhythms has negotiated interconnection deals with the telcos and is already reselling xDSL service over leased copper lines. Teaming with MCI gives Rhythms more metropolitan and long-distance network muscle. The joint services, to include various forms of xDSL, from Symmetric service at speeds from 128 kilobits per second up to Asymmetric DSL at download speeds as high as 7 megabits per second, will be offered beginning in the second quarter of this year. "We expect to be able to reach 70 percent of U.S. businesses by the year 2000," said DeMerlis, based on Rhythms' connections and existing deals between UUnet Technologies, MCI's Internet service provider unit and other carriers.