The business basics on WorldCom Inc. and merger target MCI Communications:
WorldCom:
Core divisions include local phone service (86 markets), long-distance service (fourth-largest US provider), and Internet access (world's largest ISP) - all over company-owned fiber-optic network. Diversity and aggressive growth strategy drive high market capitalization. Business customers provide the bulk of WorldCom revenue.
Revenues: US$5.63 billion (1996)
Growth rate: 23.2 percent ('96)
Employees: 13,800
Market Cap: $31.06 billion
MCI:
Second-largest long-distance provider in US. Despite attempts to diversify into local phone service (currently in 21 major markets), Internet access, and broadcast satellite markets (including a $1.35 billion investment in News Corp.), long-distance service still accounts for more than 90 percent of revenue, raising concerns about the company's capacity for long-term growth and depressing market capitalization.
Revenues: $18.49 billion (1996)
Growth rate: 21.2 percent ('96)
Employees: 55,000
Market Cap: $24.47 billion
Sources: Hoovers, The Wall Street Journal, WorldCom, MCI
