MCI announces a discount plan for small firms

Article Abstract:

MCI Communications Inc is expanding on its Friends and Family discount long distance service with Friends of the Firm, aimed at small businesses, compelling AT and T to promise to even the score. Business customers receive an additional 20 percent savings over their already-discounted rates on telephone calls, facsimile transmissions, calling card charges, mobile telephone calls and international long distance. Businesses that spend between $1 and $2,000 a month for telephone service qualify for Friends of the Firm. AT and T has countered with statements that MCI is merely responding to AT and T's recent gains and new services for small businesses, since AT and T's discounts for service already range between 5 percent and 20 percent. Sprint Corp acknowledged that MCI's announcement will make it reassess its rates. Analysts are mixed in their views on Friends of the Firm's potential for profitability.

Prices and rates, Small business, MCI Communications Corp., MCIC, Price cutting, Financial Analysis Software, Competition, Long-Distance Telephone Service

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Baby boom; the Bells are heading for long distance. Brace yourself

Article Abstract:

The Baby Bells are looking to enter the $68 billion long-distance telephone market, but they have a number of obstacles to overcome in order to succeed. The seven Bells have been pushing lawmakers to lift the ban that has kept them from participating in the long-distance market since their break from AT&T 10 years ago. The Bells' entry into the market will mean competition for MCI, Sprint and AT&T, which currently hold nearly 90% of the market. The Bells are promising customers lower long-distance rates and special discounts, especially in the area of short-hop toll calls. The Bells would also bring sophisticated networks and billions of cash flow into the market. However, the Bells must first change the perception among regulators, consumers and the government that they are strictly monopolists looking to exclude all rivals.

Wired Telecommunications Carriers, Long Distance Telephone Svc, Local Telephone Service, Telecommunications services industry, Telecommunications industry, Forecasts and trends, Marketing, Industry trend, Market trend/market analysis, Local telephone services

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