BUSINESSWEEK ONLINE : NOVEMBER 20, 2000 ISSUE
BUSINESS WEEK E.BIZ -- COVER STORY

Challenges Ahead for WorldCom


The telecom giant is facing competitive threats in all of its major 
markets


Voice

WorldCom (WCOM) is the No. 2 provider of long-distance service, but it's a 
status losing its value. There are more than 500 long-distance providers today, 
driving prices down as low as 3 cents a minute for big corporate customers. 
WorldCom's share of the long-distance market is expected to fall to 15% by 2005 
from 25% today.

1999 revenue                                    $21 billion
Percentage of total revenue                     43%
Projected annual growth for next three years    3%


Data

WorldCom is the largest single carrier of data in the country, with about 50% 
of the market. But carrying data is turning into a low-margin business, and 
nimble rivals are selling higher-priced services, such as Web hosting. WorldCom 
is starting to do the same but lags behind upstarts Exodus (EXDS) and Qwest (Q).

1999 revenue                                    $7.5 billion
Percentage of total revenue                     20%
Projected annual growth for next three years    30%


Internet

WorldCom is the No. 1 provider of Internet access to corporate customers. The 
business is growing fast, but the price of access is falling as new competitors 
enter the market. WorldCom is working hard to use Internet access as a foot in 
the door to sell higher-priced services, such as wireless data services.

1999 revenue                                    $3.5 billion
Percentage of total revenue                     10%
Projected annual growth for next three years    More than 40%


International

WorldCom, which offers communications services in 16 countries, thinks that 
overseas markets will help boost its growth as foreign companies tap into the 
Net. But building networks and signing up customers overseas is tough, partly 
because these markets tend to be less open to competition.

1999 revenue                                    $1.7 billion
Percentage of total revenue                     5%
Projected annual growth for next three years    More than 30%


DATA: COMPANY REPORTS


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EBIZ Cover Image, link to ebiz table of contents
EBIZ Contents for issue dated Nov. 20, 2000


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