FACT FILE

MCI WorldCom

The dominant company in the telecommunications world to be createdsince the deregulation of state-owned telephone company monopoliesbegan in the mid-1980s. It provides a full range of telecoms voiceand data services in 65 countries, with the bulk of its business inthe US.

The company began in 1983 as a discount re-seller of off-peaklong-distance telephone time and came to widespread public attentionin 1997 when it outbid BT for MCI, the second-largest US longdistance phone carrier.MCI was founded in 1963 to build a microwave radiotelecommunications system between St Louis and Chicago. Five yearslater it began to develop plans to challenge the US monopoly phonecompany AT&T. MCI began anti- trust proceedings against AT&T in thelate 1970s, was first awarded damages in 1980, and four years laterwon the landmark decision that prompted US deregulation.n Turnover for 1 October to 31 December 1998: pounds 4.84bn - up14 per cent on last year.n Market cap: pounds 932.1bn.n Share price: $83.5 (pounds 52).British TelecomBT provides local and long-distance telephone services in the UK.It links the UK grid to the telecoms grid worldwide. It owns 60 percent of the mobile phone company Cellnet. Last year it signed ajoint venture deal with AT&T to provide international services withits international grouping, Concert. It has equity stakes in 43joint ventures worldwide.The company generates more than 90 per cent of its turnover. Butit is gradually losing market share to more than 100 licensedtelecoms operators in its home market. Last year it unveiled itsstrategy to compete for a dominant position in the exploding internetmarket and signed a joint venture with Yahoo!, the American web siteportal company.n Turnover for 1 October to 31 December 1998: pounds 4.68bn - up15 per cent on last year.n Market cap: pounds 698.8bn.n Share price: pounds 10.80.National shares of European telecoms market ($bn pa)Country 1997 % mktGermany 35 25%UK 31 22%France 19 14%Italy 18 13%Spain 9 6%Netherlands 6 4%Switzerland 5 4%Belgium 3 2%Austria 2 2%Sweden 2 2%Portugal 2 1%Ireland 2 1%Denmark 2 1%Norway 2 1%Finland 2 1%Total 140Source: Merrill Lynch estimates.