Premium
This is an archive article published on August 6, 2003

Review finds no call routing errors: WorldCom

Bankrupt telephone company WorldCom Inc said a preliminary, internal review uncovered no evidence that it improperly routed long-distance te...

.

Bankrupt telephone company WorldCom Inc said a preliminary, internal review uncovered no evidence that it improperly routed long-distance telephone calls to avoid paying hefty connections fees to other carriers.

Separately, WorldCom, which is changing its name to MCI, said a move to bar it from competing for government contracts would have little impact on its bottomline if it gets recertified by November 1, 2003.

If the company is prevented from winning new contracts or extending existing ones by July 1 of next year, its revenues would be cut by $427 million in 2004, according to a bankruptcy filing.

WorldCom also disputed claims by its rival, AT&T Corp, which last week contended that WorldCom routed US domestic calls, which normally incur high access fees, through several carriers in Canada and the US, and then on to AT&T’s network, thereby shifting the costs onto AT&T. WorldCom fought back, saying AT&T’s claims were made ‘‘solely for competitive gains … designed to delay and derail’’ its rival’s emergence from Chapter 11 bankruptcy.

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement