WASHINGTON-In its 1996 annual report released last week, MCI Communications Corp. waxed eloquent on its successes in the local exchange, the international market, its partnership with British Telecom plc and the continued growth of its core businesses. However, the second-largest U.S. long-distance carrier gave short shrift to its wireless businesses.
In his letter to shareholders dated Feb. 24, MCI chairman Bert Roberts cited 21 percent growth in total revenues-to $18.5 billion-and per-share income of $1.73, a 12 percent increase. While touting its new Internet system that, according to company figures, serves some 30 percent of Fortune 100 companies, nowhere does he mention MCI’s cellular, paging or upcoming personal communications services business.
It isn’t until six and one-half pages later in the 32-page annual report that wireless communications gets a mention, and only a paragraph at that. Most of MCI’s wireless revenues, the report admitted, came from the 1995 acquisition of Nationwide Cellular, an outfit that also included some paging properties. Wireless revenues increased from $254 million to $347 million last year, and 80 percent of that was attributable to the Nationwide buy. Cellular subscribers increased from 347,000 to 429,000, due to expansion that increased MCI’s cellular coverage to 35 markets.
MCI’s paging operations, on the other hand, fell off in 1996 as the company contemplated its costs and service infrastructure. MCI “anticipates re-launching the service in the first half of 1997.”
MCI did not break out the company’s losses incurred last year by its wireless division by service; 1996 net losses totaled $43 million, compared with $18 million in 1995.
MCI’s billion-minute PCS contract with NextWave Telecom Inc. is not mentioned anywhere in the annual report by MCI as business completed last year, even though both companies have used the agreement in conversation and in print as a marketing tool for the future. Calls made to MCI’s wireless personnel were not returned by press time.
