But Kagan doubts that WorldCom's new program is a "magic bullet" that will lift it out of bankruptcy. At most, Kagan says, the program will help the struggling company hang on to valuable customers and, as with its Neighborhood program, generate some desperately needed good news.
"WorldCom has taken a hit. They need to shake off the old baggage, draw a line in the sand, and separate their financial issues from their marketplace issues," Kagan said. "The financial issues will have to work themselves out in the next year or two. In the meantime, WorldCom has a challenge on the marketing side, which is to hang on to customers and grow their business."