Will MCI Still Answer?

  • With the financial troubles of WorldCom, customers of MCI, its long-distance subsidiary, may be wondering if they have reason to worry. A TIME phone-service customer called MCI to find out:

    TIME: I was thinking about switching over to one of your plans, like this Neighborhood plan, but I keep reading about you guys in the news.

    MCI: Oh, I wouldn't worry about that. MCI isn't going anywhere.

    TIME: No?

    MCI: No. I don't know what's going to happen with WorldCom, but nothing's going to happen with us. We'll be here.

    TIME: Isn't it the same company, though?

    MCI: Well, there was a merger, but, you know, they're like two different units. Now, I think the smart thing for them to do would be to just sell us to someone else. As a matter of fact, I think someone has already offered to buy this unit, so in that case, we would be separate from WorldCom, or they could just spin us off as a separate company again. But we're not going anywhere.

    TIME: But if you guys go bankrupt, does that mean, what if I pick up the phone--

    MCI: No, it does not. What's happening will probably hurt the WorldCom stockholders, but it's not going to hurt you.

    TIME: You're not going to unplug the phone?

    MCI: Oh, no, not at all.

    TIME: I don't know, this is the hold up for me. The deal sounds good, but--

    MCI: Unlimited, unlimited calls, unlimited local calls, unlimited in-state long distance, unlimited state-to-state long distance. How could you say no to that?

    TIME: But I read that in three weeks WorldCom is going to say if it's going bankrupt or not.

    MCI: Well, even if WorldCom goes bankrupt, they're still in business. You know, Enron is still in business. K Mart is still in business. So going bankrupt for a business is not a big deal. And besides, we are a unit within WorldCom, so nothing's going to happen with us. We are their cash cow. They're not going to do anything to harm their cash cow, O.K.? So let's get your name as it appears on your telephone bill ...