Word: mci
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...residential market is finally starting to heat up--and the Bells' once dependable growth is cooling down. Thanks to newly aggressive state regulators who are forcing BellSouth, SBC Communications, Verizon and the much smaller Qwest to lease their networks to competitors at lower prices, rivals like AT&T and MCI are for the first time snapping up some of the most lucrative customers. "Now we have a real fight," says former Federal Communications Commission (FCC) chairman Reed Hundt, a key architect of the 1996 landmark legislation...
...MCI claim that they don't want to remain under the government's wing forever. They insist they will eventually build their own local facilities and networks in densely populated major metro areas (except for the last mile to the home, which no one expects will ever be replicated). But in a business with massive fixed costs and economies of scale--in which the current local networks were built with government subsidies and a guaranteed rate of return--the newcomers say they can't make the necessary investments until they have built up a critical mass of customers. Wayne Huyard...
...bill--to try to stem the tide of defections. Even though the Bells can't offer multinational companies much in the way of international calling, all of them--led by Verizon--are making a concerted push for U.S. Big Business customers, a sector still dominated by AT&T, MCI and Sprint...
...telecom-industry analysts, Powell has made clear that he thinks that the industry may well need another round of consolidation to get back on sound footing--whether that means SBC and BellSouth or Verizon and Qwest joining forces, the Bells snapping up their newfound competitors at AT&T and MCI, or some of the six major wireless carriers finding strength in numbers. But, as Gene Kimmelman, co-director of the Washington office of Consumers Union, points out, "If Powell goes too hard too fast, he could end up with egg all over his face, with a more monopolistic market that...
...helps companies buy naming rights, says there are more than 60 multiyear naming deals in the U.S., worth a total of about $3.5 billion. Five of the arenas with such deals have lost or switched sponsors this year alone, and the trend shows no sign of stopping. The MCI Center, home of the Washington Wizards, may be looking for a new name soon if MCI's parent, WorldCom, declares bankruptcy or looks to cut its costs. The news isn't all bad, however. Firms such as Staples (Los Angeles) and HSBC (Buffalo, N.Y.) are doing well with their names...