FCC votes to open local phone firms to competition by fledgling networks

Article Abstract:

The Federal Communications Commission has voted to permit startup fiber optic network providers to sell services in major cities and to connect their equipment and cables to local telephone networks. The 'competitive access providers' will be able to supply interstate long distance service via local network connections. Companies, including Metropolitan Fiber Systems Inc and Teleport Communications Group, will be able to compete with established local phone companies to provide local service. Industry analysts compare the FCC decision with the 1978 decision that permitted MCI and Sprint to connect their networks to the Bell System. In addition the the decision granting fiber optic companies access to local phone networks, the FCC is considering changes in the rate structure that will govern how the competitive access providers will be charged for use of local networks.

Laws, regulations and rules, Telecommunications industry, United States. Federal Communications Commission, Fiber optics, Government Regulation, Telecommunications Services Industry, Telephone Companies

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MCI to revamp units, may cut 1,500 staffers; rival firms, slow economy are factors; costs seen for 'several quarters.' (MCI Communications Corp.)

Article Abstract:

MCI Communications Corp may layoff 1,500 workers between Nov 1990 and Apr 1991 in an effort to deal with a sluggish economy and rigorous competition. The long-distance telephone company is paring its seven divisions down to four as part of a cost-reducing restructuring program. The streamlining will allow MCI's managers to react more swiftly to competition and position the company for growth. MCI hopes to grow more rapidly than the overall telephone services market but the cost of restructuring will have adverse effects on earnings for several quarters. MCI traded as low as $28.75 a share and closed at $30 a share on Nov 15, 1990.

Management, Telecommunications services industry, Business planning, Layoffs, MCI Communications Corp., MCIC, Layoff, Strategic Planning

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