WorldCom


Also found in: Dictionary, Medical, Financial, Wikipedia.

WorldCom

The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard E--ers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. LDDS grew by acquiring more than 70 companies, including IDB WorldCom, a leading international carrier whose name it adopted; WilTel, a major telecom carrier; and MFS Communications, an international phone company and parent of UUNET, a prominent Internet provider.

In 1997, the network operations of America Online and CompuServe became part of WorldCom. It also merged with Brooks Fiber and then acquired MCI, making it the second largest long distance carrier in the U.S. In 2002, WorldCom filed for bankruptcy after disclosing it had inflated profits for the prior two years by USD $3.8 billion. The amount was later found to be more than $10 billion, making it the largest accounting fraud in U.S. corporate history.

In April 2004, WorldCom emerged from bankruptcy and changed its name to MCI, which it acquired in 1998. MCI was founded in 1968 by William McGowan as Microwave Communications of America. Throughout the 1970s, McGowan led the battle to offer competitive long distance services in the U.S., cracking the monopoly of AT&T.

Ironically, having shed $36 billion in debt, WorldCom emerged from bankruptcy with a better balance sheet than most of its competitors. It also wound up with a corporate name respected for its pioneering efforts in telecom. One year later, MCI was acquired by Verizon. See MCI.
References in periodicals archive ?
Schober, who recently took over as chairman, is in Dubai to helm WorldCom Emea's brainstorming summit, which has also brought in the 45 heads of agencies making up the network.
The collaboration with Tel Aviv-based WorldCom Finance would welfare Filipinos working in Israel.
In the four categories evaluated - strategic approach, client satisfaction, Worldcom partner performance and Worldcom marketing and participation - McGrath/Power scored a total of 92 out of a possible 100 points.
This all abruptly ended in June 2002 when it was disclosed that WorldCom had perpetrated one of the largest accounting frauds in U.S.
Schroerlucke alleged that he was entitled to deduct the entire value of the loss due to theft on behalf of the officers at WorldCom. He claimed that various top-level officials continually assured him that the stock was safe and would hold its value.
At the time, the bankruptcy of WorldCom was the largest in the history of United States companies, overshadowing even that of Enron.
"As wireless broadband networks become ubiquitous throughout the Middle East and North Africa, mobile users will turn to value-added distributors like Worldcom Technology for reliable, ultra high-speed wireless Internet solutions," said Rob Hadley, CMO, Novatel Wireless.
In Virginia, where Taghadoss lived, theft requires an intention to permanently deprive another of his or her property Thus, WorldCom officials' filing of false statements with the SEC was not theft, the court held.
Also in January 2005, 10 former WorldCom directors agreed to personally pay $18 million as part of a total $54 million settlement with lead plaintiff New York State Comptroller Alan Hevesi.
WorldCom's disclosure of billions of dollars of financial fraud on June 25, 2002 challenged the Federal Communications Commission ("FCC") in several major ways.
TELECOMWORLDWIRE-14 July 2005-Former WorldCom CEO sentenced to 25 years(C)1994-2005 M2 COMMUNICATIONS LTD http://www.m2.com
28, 1998, the Sendas transferred 28,500 shares of MCI WorldCom from their joint brokerage accounts to SFLP I in exchange for their GP and LP interests.