...On MCI's Woes
LOCAL PHONE BUSINESS
MCI faces $800 million in losses this year--twice the level anticipated--and it will likely incur up to $1 billion in losses in 1998.
MCI saw calling growth drop to a market-lagging 4% in the first quarter. New entrants are pushing down prices and putting pressure on market share of MCI and AT&T.
WIRELESS PHONE SERVICE
Unlike rivals AT&T and Sprint, MCI chose not to build a wireless network. Instead, it is buying capacity from NextWave Telecom, a company now facing financial woes.
MCI's $682 million investment in a satellite slot for Rupert Murdoch's direct-broadcast satellite venture has yet to pay off.
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Updated July 17, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.