MCI WORLDCOM-SPRINT DEAL SIGNALS INDUSTRY CHANGES
While analysts Tuesday predicted regulators eventually
will permit MCI WorldCom to buy Sprint, the result will not
necessarily be good for consumers or for competition,
according to industry insiders. The deal indicates the
industry is headed for a model focused on bundled-service
packages offered by increasingly fewer, big players.
Although analysts agreed that WorldCom, as the new
company would be called, should be in better position to
duke it out with AT&T, the deal essentially would lead to
two dominant U.S. carriers with a closely matched share
of the long-distance market, as well as wireless holdings,
Internet service and a global presence.
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