WorldCom

For a time, WorldCom (WCOM) was the United States' second largest long distance phone company (AT&T is the largest). WorldCom grew largely by acquiring other telecommunications companies, most notably MCI. It also owned the Tier 1 ISP UUNet, a major part of the Internet backbone. It was based in Clinton, Mississippi.

In June, 2002, an internal audit discovered that US$3.8 billion had been 'misaccounted.' The US Securities and Exchange Commission launched an investigation into these matters on June 26, 2002 (See accounting scandals).

On July 22, 2002 the BBC reported that WorldCom had filed for Chapter 11 bankruptcy protection.

In August, 2002, an additional $3.3 billion in improper accounting since 1999 was announced.

In light of these accounting scandals, the company has changed its name to MCI.

In May, 2003, the company was given a no-bid contract[?] by the United States Department of Defense to build a cellular telephone network in Iraq. The deal has been criticized by competitors and others who cite the company's lack of experience in the area. [1] (http://seattlepi.nwsource.com/business/123016_worldcomiraq22)

External links

• http://www.worldcom.com/
• HavenWorks' WorldCom News (http://www.HavenWorks.com/business/research/worldcom)
• Forbes article on WorldCom scandal (http://www.forbes.com/home/2002/06/26/0626topnews), Forbes
• WorldCom files for bankruptcy (http://news.bbc.co.uk/hi/english/business/newsid_2143000/2143217.stm), BBC News
• Analyst Coached WorldCom Chief on His Script (http://www.nytimes.com/2003/02/27/business/27TELE), The New York Times, February 27, 2003