MCI Communications Corp. apparently is selling cellular service to residential customers once again after customer service representatives had told potential customers MCI wasn’t taking on new cellular subscribers after June 1.
Kelly Seacrist, an MCI spokeswoman, said the company, which resells cellular service nationwide, never stopped selling cellular service to residential and business customers, and CSRs received the wrong information.
However, MCI CSRs contacted by RCR June 16 said the company was no longer selling cellular service. By June 19, however, MCI reps indicated they were offering residential cellular service.
The confusion comes as no surprise to industry watchers and highlights MCI’s jagged wireless communications strategy. MCI’s strength in wireless has slowly faded as the company indicated early this year its decision to reduce efforts to market wireless service as a stand-alone product. As a result, cellular revenues and customer numbers continue to fall. MCI offers a one-stop shopping approach that includes offerings such as cellular, paging, long-distance and Internet service. Analysts have wondered why MCI continues to devote any resources to this segment when growth is lagging and customers are not actively seeking to bundle wireless with long-distance service.
RCR reported in January that MCI Telecommunications, the communications services arm of MCI, was planning to eliminate some wireless positions in the Dallas/Fort Worth area. A letter obtained by RCR indicated MCI was redirecting its efforts along core business activities and de-emphasizing activity in certain areas that are not in the company’s near-term focus. As a result, said the letter written by an MCI senior wireless manager to Dallas-area wireless companies, various wireless professionals may be seeking outside employment.
Since MCI turned down an all-cash offer from GTE Corp. and accepted a $37 billion stock offer to merge with long-distance carrier WorldCom Inc. in November, analysts have believed wireless service will not be a priority for the combined company, which will focus on the business market.
WorldCom President and Chief Executive Officer Bernard Ebbers has not announced any aggressive plans for wireless service. Worldcom also resells cellular service.
Adding to MCI’s woes is the fate of NextWave Telecom Inc.-a C-block personal communications services operator that recently filed for bankruptcy. MCI in 1996 signed a resale agreement with NextWave to buy at least 10 billion minutes of wireless airtime during a 10-year period. At that time, NextWave said it expected to begin commercial service by mid-1997.
Speculation is running high on whether MCI/WorldCom may acquire a wireless company. Some analysts are pointing to Nextel Communications Inc., a nationwide enhanced specialized mobile radio operator that targets business users and is giving cellular and PCS carriers strong competition. MCI once owned 17 percent of Nextel but ended the relationship in 1994.
