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CNN Live Today

MCI Customers Will Likely Have Uninterrupted Service

Aired June 27, 2002 - 12:23   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Now that corporate America and the rest of us have had a day or so to digest the WorldCom scandal, a question that keeps coming up is: What about my phone service?

CNN financial correspondent, Valerie Morris, is plugged into all of that, and she joins us with some answers -- hi there.

VALERIE MORRIS, CNN FINANCIAL NEWS: Hi, Fredricka. You know, these numbers are pretty daunting. Where there is a phone, it seems there is WorldCom or MCI. According to the FCC, about 30 percent of all placed calls go through MCI or WorldCom; 70 percent of Internet traffic and 50 percent of business communications are using their lines in some way. So it stands to reason that if you are one of those customers, your phone service is in peril. Specialists say not to worry.

At worst, if WorldCom files for bankruptcy protection and starts selling assets, consumers will receive a letter in the mail that says, "Congratulations, AT&T or Sprint is now taking over MCI's service in your area. And do you want to sign up?"

Specialists say the most likely scenario is uninterrupted service as other companies buy up bits of MCI's network. Even if they don't, the FCC requires telecoms to give customers 30 days notice before discontinuing service. The 30-day rule was recently enforced in a very similar case in Colorado. Last September, Rhythms Net Connections, a Colorado-based DSL operator, filed for chapter 11 status and tried to end service in less than the prescribed 30 days. The FCC forced them to keep operating.

By law, telecommunications companies are required to apply to the FCC for permission to shut down, and are not allowed to pull their own plug until 30 days after the application is public. So far, WorldCom- MCI has made no such request publicly -- Fredricka.

WHITFIELD: Well, Valerie, I don't think so many people realized how many of their long distance calls were going through MCI. So what are our options? What can we do as consumers?

MORRIS: Well, to start with, don't panic, because there is absolutely no reason to switch your service today. In fact, waiting may be better, as other phone companies react to the news and try to set up some pretty enticing offers to get you to choose them. I think the biggest problem at this point for WorldCom-MCI customers will be customer service. The president of WorldCom, John Sidgmore, said just yesterday that he would begin laying off about 20 percent of the company's work force. That could mean longer waits when you call for help or you need repairs.

I should also mention that Internet connections unlikely to be affected. While WorldCom has a lion share of those connections, there is so much excess capacity on these kinds of lines that there won't be even a hiccup in that service -- Fredricka.

WHITFIELD: All right. Valerie Morris, thank you very much.

MORRIS: Sure.

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