Word: mci
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...people will automatically be assigned one of them, probably A T & T. These developments are an outgrowth of the Jan. 1 breakup of the Bell System, and of dozens of regulatory and technical changes in American telecommunications during the past 15 years. Says Edward Carter, marketing vice president of MCI: "For American consumers, it is the most significant change in a day-to-day necessity they've ever seen...
...chief challengers to A T & T are MCI and Sprint, small but nimble carriers that nibble away at A T & T's customers with high technology, growing networks and lower tolls. Along with lesser-knowns like Chicago's Allnet, the big competitors are mounting publicity and ad campaigns that would make Barnum proud. Actor
Cliff Robertson does the pitching in television ads for A T & T, while Comic Joan Rivers weighs in for MCI. Companies are offering lures aplenty. A T & T and MCI first gave away an hour of free long-distance time for signing up; Sprint quickly matched them. Before the campaign is over, each consumer in Alameda will be reached four times by mail or phone by Sprint promoting its discounts. There are promises of fee cuts and refunds if users are not satisfied. A T & T plays up services that its rivals cannot match. Examples: collect and person-to-person...
...competitors, the riches from even a tiny slice of A T & T's long-distance pie are substantial. A T & T's share of the market is 61%, with the new regional companies and non-Bell independents handling an additional 32%. MCI's revenues doubled annually between 1980 and 1983, going from $144 million to $1 billion. In that same period, profits mushroomed from $13 million to $171 million. Yet its share of the long-distance market is only 3.5%, 1.3 million residential customers and 300,000 business clients. Sprint has less than a 2% share...
...MCI does not appear too nervous about that problem. It intends to offset the slightly lower profit margin by getting more customers and hanging on to them longer. Currently the company loses about 40% of its customers annually because of MCI's long and cumbersome access codes or occasionally poor connection quality that is due to inadequate switching systems. Those difficulties should ease with equal access to local tele phone systems...