MCI Communications Corporation
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MCI Communications Corporation
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MCI Communications Corporation
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Biographical History
MCI Communications Corporation, Inc. (MCI) was incorporated in Delaware in August 1968 as Microwave Communications of America, Inc. (MICOM) (name was changed in July 1971), to provide businesses with nationwide microwave telecommunications services at low prices. Its predecessor, Microwave Communications, Inc., was established in October 1963 in Joliet, Illinois, and later became one of MCI's seventeen regional companies engaged in construction of MCI network segments. During the 1970s, these companies merged into MCI Telecommunications Corporation - MCI's operational subsidiary that was organized in February 1973. MCI Communications Corporation merged with WorldCom, Inc. on September 15, 1998 and the company name became MCI WorldCom, Inc. The name reverted to MCI under the Plan of Reorganization filed by the company with the Bankruptcy Court in April 2003.
The company offered American customers various telecommunications services, beginning with point-to-point private line microwave communications between Chicago and St. Louis for small businesses in 1971. They became one of the largest providers of local, long distance and international voice, data, Internet, and wireless telecommunications by the end of the century.
MCI's first financial success was based on launching Execunet, a new category of service called metered-use, in 1975. Immediately the company was confronted by the industry de facto monopoly AT & T, which controlled an interconnection to local facilities owned by its affiliated regional Bell companies. MCI challenged the telecommunications giant in the courts. The U.S. Department of Justice and MCI antitrust litigation against AT & T (1974-1985) led to AT & T divestiture of its regional carriers and changed the previously regulated telecommunications industry into a business open to competition.
To be able to compete with AT & T and other common carriers, MCI needed a reliable coast-to-coast network. In 1971 MCI formed a joint venture with Lockheed Aircraft Corporation called MCI Lockheed Satellite Corporation, to compliment its microwave network with satellite communications. Sold in 1974 to IBM, the same satellite business under the name Satellite Business Systems (SBS) was reacquired by MCI in 1986. To expand its network to Minneapolis, Dallas, Memphis, and Atlanta, MCI acquired the Nebraska Consolidated Communications Corporation (N-Triple-C) in June 1974 and in June 1978 purchased previously leased microwave facilities from Western Tele-Communications, Inc., to conduct operations on the West Coast.
With the establishment of its telecommunications network, in 1980 MCI extended its business to residential markets, launching a vigorous advertising campaign with an emphasis on savings against AT & T and for the first time positioned itself as the nation's long distance phone company. As a result of AT & T divestiture, in January 1984, all long distance carriers received equal access to interconnection facilities, and customers had to choose their service provider. MCI challenged its competitors, AT & T primarily, with an innovative advertising campaign, which included comparative and negative advertising, celebrity endorsements, extensive telemarketing, and marketing partnerships.
In June 1982, MCI acquired Western Union International, Inc. MCI International, Inc. (MCII) subsidiary was formed in November 1982 as the holding company for Western Union International telex business and to provide a base for MCI to establish international telecommunications services. The first international dial-up voice service from the U.S. to Canada was provided in April 1983. After acquisition in May 1988 of international carrier RCA Global Communications, Inc. MCI's customers were able to make direct dial calls to 150 countries.
In 1983 MCI began switching from microwave technology to modern fiber optic transmission. Beginning with the order of more than 150,000 miles of fiber optic cable in 1983 (the largest order at that time), by 1989 MCI owned two complete transcontinental fiber optic networks that carried a large volume of traffic at high speed with high quality. With conversion of its entire network from analog to digital transmission by 1991, MCI entered the last decade of the 20th century well equipped to provide full scale integrated global telecommunications services to government, business, and residential customers.
MCI led the industry with its steady interest in emerging technologies. It was the first major company in the electronic mail market with the introduction of MCI Mail in September 1983, a data transmission service, which combined the speed of electronic message with the flexibility of a land courier service. The public was not ready for communication via computer at that time, and MCI had to decrease its electronic mail operations in 1985. MCI revitalized the service in 1988 enhancing it with innovative fax service, and in the 1990s e-mail became a part of company's portfolio of on-line services called networkMCI.
MCI's plans to become a major player in a rapidly developing mobile phone business -- paging and cellular phone communications in the first half of 1980s-- were also abandoned because of lack of subscribers' interest at that time and due to changes in regulatory rules. MCI Airsignal subsidiary, created in 1982 from a subsidiary of Xerox Corporation that MCI had acquired together with Western Union International to operate the mobile phone business, was sold in 1986 to McCaw Communications Companies, Inc. MCI returned to the cellular business in 1995 with the purchase of Nationwide Cellular Service, Inc., immediately following AT & T and Sprint PCS in delivering cellular services.
In August 1990 MCI completed the largest merger in the history of long distance telecommunications industry by acquiring Telecom*USA - a rapidly growing telecommunications company that aggressively developed new products such as use of credit cards for making long distance calls via pay phones, transferring recorded messages, and arranging conference calls. The company also owned a 3,000-mile long fiber optic network, which enhanced MCI's network capability. MCI reinforced its satellite network by acquisition of Satellite Business Systems in 1986 and Overseas Telecommunications, Inc., a specialized provider of digital satellite communications services to 27 countries, in 1991.
In the late 1990s MCI sought a business partner in order to increase the company's capital for more efficient competition with domestic and international carriers. British Telecommunications Corporation (BT) was the first candidate for the merger and in 1993 bought 20 percent interest in MCI. However, the merger was cancelled, and in 1997 BT's stake in MCI was bought out. Instead, in September 1998 MCI entered into a merger with telecommunications firm WorldCom, Inc., and MCI WorldCom, Inc. was created.
MCI Communications Corporation, Inc (MCI) was incorporated in Delaware in 1968 as Microwave Communications of America, Inc. (name changed in 1971) to provide businesses with nationwide microwave telecommunications services at low prices. Being confronted by industry de facto monopoly AT & T in interconnection of its lines to local facilities owned by AT & T affiliated regional Bell companies, MCI challenged the telecommunications giant with competitive long distance telephone services, both in courts and in the marketplace.
Antitrust litigation against AT & T (1974-1985) led to AT & T divestiture of its regional carriers and transformed previously regulated telecommunications industry into a business open to competition. MCI successfully adapted to the changes and by the end of the 20th century became one of the largest providers of telecommunications services in the world. On September 14, 1998, MCI merged with another telecommunications company WorldCom, Inc. to form MCI WorldCom.
Stanley B. Scheinman, Chief Financial Officer and Senior vp of MCI, 1971-1975. Formerly at PepsiCo, Inc. and Revlon, Inc, Scheinman was charged with financing the construction of MCI's national network through innovative leasing arrangements and credit agreements with equipment manufacturers and banks. Scheinman resigned in 1975 under pressure from MCI's creditors, concerned about profitability and operating expenses, and was replaced by Wayne G. English.
Boyd Wanzer, Director of Corporate Services from 1981 until his dismissal in March 1988 for alleged fraud. Wanzer was responsible for operational and financial management of MCI corporate real estate and facilities, including office moving and warehouse storage.
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https://www.worldcat.org/identities/lccn-n88245210
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