WorldCom plans to split in two

AT&T will soon have company on the restructuring front.

WorldCom CEO Bernard Ebbers told financial analysts and the press last week that his company will announce such a blueprint Wednesday at its investor meeting. Although he declined to go into much detail, Ebbers said the company would be split into two divisions: one focused on digital business services and the other focused on voice services.

WorldCom's digital business group will focus on offering global corporate users data, Internet, Web hosting and IP VPN services, Ebbers says. The voice division will focus on offering consumers traditional telephone services.

While it's possible that WorldCom could completely divest its consumer long-distance services, it is more likely the service provider will create a tracking stock similar to what AT&T is planning, says Lisa Pierce, an analyst at Cambridge, Mass., consulting firm Giga Information Group.

Although WorldCom has shown interest in buying a mobile wireless service provider in the past, it seems Ebbers is completely moving away from that idea.

"The requirement for us to have a mobile wireless capability is more consumer-focused and not part of our core business," he says

This story, "WorldCom plans to split in two" was originally published by Network World.

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