worldCOM going down.

[|The|Specialist]

Hey I just heard worldCOM is going down. This is gonna make alot of users mad if they stop being a ISP though.

Its a big company I wonder why its going down hill.

[nebulus200]

Because they grossly overstated income, calling over 4 billion dollars of expenses/losses 'capital expenditures' thus making the company look more profitable. On top of that, they had over 30 billion dollars of existing debt...combine the two with itchy investors and nervous creditors doing cash calls and you have massive bankruptcy.

In their official announcement, they specifically said that all operations will continue (the bankruptcy is chapter 11 or restructuring...), that they don't anticipate any changes in employees (people who would work on those internet connections), and that service will continue as normal. They are also supposidly bound by law to give a minimum of 30 days notice if they are to shutdown any network connections.

I would suspect the road to recovery to be long and painful for them and whether or not they make it, UUNET (their ISP part) will move on, if not under worldcom, under someone else...

Neb

http://money.cnn.com/2002/07/19/news...ptcy/index.htm
http://www.mci.com/about_mci/news_room/index.jsp

[droby10]

has anyone else noticed the increased negotiations, co-involvement between microsoft and worldcom lately? ...i'd hate to think or even imply what is an 'unknown,' but the thought has to scare you...

[bombayofpigs]

if any of you wondered that the lights will be turned out in wcoms fiber - here is an interesting article. Did you know that half of the internet traffic runs over a WCOM network including the military and government. I remember when i worked over there a few years back, wcoms big story was that they provided the dedicated circuit for the red phones between washington and the kremlin.

http://www.reuters.com/news_article....toryID=1233949

[allenb1963]

yep...Worldcom owns UUNet.....but they assure the public that UUNet will not be affected. Given the level of honesty displayed thus far, I should believe this because...?

[v3n0m356]

This is going to hurt the Telecom sector badly