J.D. Falk [mailto:jdfalk@vix.com] wrote on Friday, May 29, 1998:

God, this is all so DERANGED.

...

It would if MCI was selling off the entire Internet segment of the company. Right now it looks like they're actually only selling a tiny chunk (probably the chunk that's got "Internet" in the name as opposed to "data services"), so it's pretty clearly just a token effort -- but it might work, leaving MCI Worldcom free to screw us all over.

ISP/C's objection to the MCI/WorldCom combination was stated as follows: ++++++++++ Worldcom's UUNet division has made recent changes in its peering and pricing policies which lead us to be concerned about possible predatory actions in this regard [if the merger is allowed]. Furthermore, Worldcom has control of most of the peering points domestically through its MFS division, while international peering points are controlled by Worldcom's division of UUNet... If the merger is approved, we urge strong consideration to the divestment of InternetMCI from the merger equation. ... [Additionally,] the extent of [MCI/WorldCom's] underlying [transmission] capacity poses a reasonable threat to a broad spectrum of traditional stratification in the telecommunications marketplace. http://www.ispc.org/policy/filings/fcc19980320.shtml ++++++++++ I assume that their concerns stated in that first paragraph are satisfied by MCI's action. Commercial ISPs will be contracting with C&W, not MCI/WorldCom, for wholesale access and peering. The second concern is not addressed. However, I regard it as without merit. The merger will not cause undue concentration of transmission capability, given strong direct competitors (AT&T, Sprint) and numerous upstarts (Level 3, Qwest, IXC, Williams, et. al.). Any reaction from current MCI wholesalers or other ISPs? Pete ______________________________________________________________________ Peter J. Farmer E-mail: pfarmer@strategies-u.com Strategies Unlimited Voice: +1 650 941 3438 201 San Antonio Circle, Suite 205 Fax: +1 650 941 5120 Mountain View, CA 94040 WWW: http://www.strategies-u.com