Telecommunication Research Paper Essay, Research Paper

Telecommunication Research Paper

MCI WORLDCOM

History:

The following is a brief history for the merge of MCI and WorldCom Inc. since 1997 to 1998.

1998

March

Telefonica, WorldCom and MCI announce that they will partner to create strategic business ventures that will leverage the three companies’ network and geographic strengths as they enter new telecommunications markets in Europe and the Americas.

January

WorldCom completes merger with Brooks Fiber, and CompuServe.

1997

November

WorldCom, Inc. announces its merger agreement with MCI Communications, Corp. to create a “new era communications company” best positioned to take advantage of growth opportunities in the $700 billion telecommunications market. The combined company, MCI WorldCom, will have over $30 billion in 1998 proforma revenues and joins together two of the industry’s most entrepreneurial and competitive forces.

October

WorldCom, Inc. announces that it will be commencing an exchange offer to acquire all of the outstanding shares of MCI Communications Corp. for $41.50 of WorldCom common stock per MCI share. Following consummation of the exchange offer, WorldCom will effect a second-step merger with all remaining MCI stockholders receiving the same per share consideration. The transaction is valued at approximately $30 billion.

September

WorldCom, Inc. announces its intention to acquire CompuServe from H&R Block in a stock for stock transaction (value $1.2 billion). In addition, WorldCom has agreed to acquire America Online’s network services company, ANS Communications. AOL will also sign a five year contract under which WorldCom will become AOL’s largest network service provider, in exchange for AOL receiving CompuServe’s Online Services division and $175 million in cash. WorldCom will retain the CompuServe Network Services (CNS) division.

July

WorldCom, Inc. announces that its Swiss operating company has received a license from the Federal Office for Communications (BAKOM) to build and operate an alternative telecommunication network in the city of Zurich. WorldCom already holds a license to operate public telecommunications services in Switzerland and has been offering non-facilities based international voice and data service in Zurich since January 1996.

June

WorldCom, Inc. announces that its French operating company has signed an interconnection agreement with France Telecom. The interconnection agreement will allow any WorldCom customer to communicate with any subscriber on France Telecom’s network.

Below is a timeline picture represented the history of the company.

Product:

The combined company, MCI WorldCom provides many products and services in

three main categories, voice services, data services, and integrated services. Within these three categories, there are variety of products and services provided to the different customers. The following is a list of describing these products and services.

VOICE SERVICES:

+ Local Service

MCI WorldCom provides connections to the local PBXs, hybrid systems, ISDN-PRI trunks, videoconferencing and Internet services.

+ Long Distance

+ Toll Free

MCI WorldCom provides toll free for both domestic and international callings.

+ Calling Card

MCI WorldCom expands its calling card capacity to 130 countries around the world.

+ Access

MCI WorldCome provides its customer with full range of capacity from Analog to OC 3 speed. The company provides different capacities that suit different customers’ needs.

+ Enhanced Call Routing

The Enhanced Call Routing (ECR) product line provides automated voice response, voice processing, and call routing for companies pursuing better and more efficient ways of talking with their customers and employees.

DATA SERVICES:

+ Internet Access Services

+ Flexible T1

+ Flexible T3

+ Tiered T3

+ Double T1

+ Diverse T1

+ Shadow T1

+ OC Direct

+ International Internet Access

+ Frame to IP

+ Digital Gateway to IP

+ Managed Firewall

+ Remote VPN

+ Web Hosting

+ Internet SLAs

+ Internet Dial

+ Private Line

+ Frame Relay Service

+ Remote LAN Dial

+ Managed Services

+ International Private Line

+ Managed International Private Line

+ ATM

+ ISDN

INTEGRAED SERVICES:

+ Paging

+ Numeric Paging

+ Alphanumeric Paging

+ Enhanced One-Way Paging

+ QuickReply Interactive Paging

+ Interactive Paging

+ Conferencing

+ Audioconferencing

+ Net Conferencing

+ Videoconferencing

+ Customer Premises Equipment

Stock Movement Chart:

MCI WorldCom Analysis Report

According to the information provided from previous section of this report, we can see clearly that MCI WorldCom will continue to grow and its stock market price will keep increasing within the next few years. The combination of MCI and WorldCom Inc. is the greatest corporation merge with the newly created company beginning to take on the lead in monopolizing the telecommunication industry.

Telecommunication is one of the biggest and most profitable markets among other industries. When comparing to the other competitors in the telecom industry such as AT&T and Sprint, MCI WorldCom has a significant lead among other competitors. However, it is not so surprising seeing this kind of result due to the strong support from the tremendous resources of the company after the merge. As people have acknowledged, WorldCom Inc. has combined other companies in the computer information industry, such as CompuServe and Brooks Fiber. The merges not only help WorldCom to monopolize the telecom industry, but also take a step into the computer retail market. By combining other computer and telecommunication companies, WorldCom Inc. enhances its ability to provide better services to the customers, strategic positioning in the sense of potential economic downsizing, and obtain more of a variety of resources in the industry.

For instance, the Asia economic crisis had brought on serious ordeals to global economic markets. Obviously, MCI WorldCom also had experienced certain degree of negative effects from the Asia economic crisis. However, the company survive quickly and rapidly after the crisis. The stock price didn’t stay at the bottom of the valley for too long, instead, it went up immediately after the crisis plus now the stock market related in telecommunications is positive. In my point of view, I think the main reason why the company survived the crisis is the healthy structure of the company, and broad and capacious resources been spread among its telecom and computer industries. It is very important for a gigantic company like MCI WorldCom to spread its resources into different related industries to lower the risk of potential impairment from the economic environment. Secondly, the company has provided a diversity of products and services to fit different customers’ needs. The company provides services with low pricing specifically to certain groups of customers in the society, and it has done a successful job. Therefore, the two main ingredients, low price and better products, have brought MCI WorldCom more profits and help to stabilize its leading place in the telecommunication industry.