Federal Internet Law & Policy
An Educational Project
MCI (Verizon) Dont be a FOOL; The Law is Not DIY
- Backbone
- Verizon
- WCom MCI Merger
- WCom Sprint Merger
- WCOM / Intermedia
- Layered Model Reg

See Break-up of AT&T and the Story of MCI

In the 1980s and 1990s, MCI would play a vital role in the creation of the Internet, winning contracts from NSF to operate the NSFNET in the 1980s and the vBNS in the 1990s.

In 1998, MCI merged with WCOM. MCI's Internet assets were divested and sold to Cable & Wireless; MCI's vBNS services however went to WCOM. (WCOM would eventually be acquired by Verizon).



1998 MCI / WCOM

1994 MCI / BT

"MCI has agreed with British Telecommunications plc ("BT") to create NewCo, a joint venture that will offer international enhanced telecommunications services. BT will also purchase 20% of MCI's stock and will have the right to appoint three of MCI's fifteen directors. BT is the dominant telephone company in the United Kingdom, as it is the provider of almost all local telephone service and has high market shares in domestic long distance and international service. Vertical affiliation between a US international long distance provider and a foreign carrier with a local bottleneck and market power in its home market is likely to reduce competition in the United States, by creating incentives for the foreign carrier to favor its US affiliate over other providers in access to its local, domestic long distance and international telecommunications services and to its network. Thus, the agreement between MCI and BT may substantially reduce competition in international telecommunications services and enhanced telecommunications services markets because BT will have the incentive and ability to discriminate in favor of the joint venture and MCI and to take other steps that could lessen competition. The result is likely to be higher prices and lower quality service for US consumers." US v. MCI Corporation and BT Fourty-Eight Company, Civil Action No. 94 1317(TFH), Complaint for Judgment and Injunctive Relief (June 15, 1994)

1993 MCI acquires Tymnet from British Telecom. Tymnet has been set up by Tymshare as a public packet switched network in 1976. In 1984 Tymnet was sold to McDonnell Douglas and in 1989 it was sold to British Telecom for $355m. [History of Telenet]