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WorldCom (UUNet)

"WorldCom operates 30 percent of the bandwidth on the 20 largest U.S. Internet backbone routes-more than the next four providers combined.  WorldCom connects over 3,400 networks throughout the world-Sprint and AT&T each connect less than half as many.  In 2001, WorldCom accounted for at least 30 percent of the wholesale U.S. backbone access market-three times more than its largest rival." - Telegeography, WorldCom Controls the Most Internet Bandwidth, Connections, and Revenue (July 10, 2002)

"10. WorldCom's UUNET subsidiary is by far the largest provider of Internet backbone services in the world, whether measured by traffic or revenues. UUNET's backbone network extends from North America to Europe and Asia, and serves more than 70,000 businesses in 114 countries. UUNET offers a wide range of retail and wholesale Internet backbone services, including "dial-up" (i.e., through shared modem banks) and dedicated Internet access (i.e., through direct connections to the customer), as well as value-added services such as Internet protocol virtual private networks ("IP/VPNs"), website hosting, collocation at data centers, applications hosting, and Internet security services.
       32.  WorldCom's wholly owned subsidiary, UUNET, is by far the largest Tier 1 IBP by any relevant measure and is already approaching a dominant position in the Internet backbone market. Based upon a study conducted in February 2000, UUNET's share of all Internet traffic sent to or received from the customers of the 15 largest Internet backbones in the United States was 37%, more than twice the share of Sprint, the next-largest Tier 1 IBP, which had a 16% share. These 15 backbones represent approximately 95% of all U.S. dedicated Internet access revenues. UUNET's and Sprint's 53% combined share of Internet traffic is at least five times larger than that of the next-largest IBP. The Herfindahl-Hirschman Index ("HHI"), the standard measure of market concentration (defined and explained in Appendix A), indicates that this market is highly concentrated. The HHI in terms of traffic is approximately 1850; post-merger, the HHI will rise approximately 1150 points to approximately 3000. (Note: Throughout the Complaint, market share percentages have been rounded to the nearest whole number, but HHIs have been estimated using unrounded percentages in order to accurately reflect the concentration of the various markets.)"
-- DOJ Complaint re WCOM Sprint Merger


WorldCom / Intermedia (Digex) Merger



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