MCI





MCI (Microwave Communications Incorporated) was the #2 long-distance
provider in the United States; the early history is discussed below. It
merged with WorldCom, Inc. in 1998 for US $34.7 billion, creating MCI
WorldCom. MCI WorldCom dropped the "MCI" from its name in 2000, becoming
simply WorldCom. More recently, in light of a huge accounting scandal, new
WorldCom was renamed MCI. MCI thus refers both to one of the companies
entering into the merger between MCI and WorldCom, as well as to the
resulting entity.

In 1963, Microwave Communications, Inc. was formed by John Goeken to offer
long-distance telephone service for businesses between Chicago, Illinois and
St. Louis, Missouri. The company became licensed by the Federal
Communications Commission in 1969 and began service under the new name MCI
Communications in 1970.

In 1991, British Telecommunications PLC purchased 20% of the company and
later made an offer to purchase the rest in 1996. A larger, competing bid
from WorldCom was ultimately accepted after British Telcom significantly
lowered the price of their offer.

After an internal audit discovered that US$3.8 billion had been
'misaccounted.' and a investgation by the Securities and Exchange
Commission, the company has changed its name to MCI.