MCI Communications Corp. is an American telecommunications company that plays a role in changing laws and regulations that result in the breakdown of AT & ATT monopolies from US telephones and delivering the competitive long-distance telephony industry. It's headquartered in Washington, D.C.
Founded in 1963, it grew to become the second largest long distance provider in the US. It was purchased by WorldCom in 1998 and became MCI WorldCom , with a name shortened to WorldCom in 2000. The WorldCom financial scandal and bankruptcy caused the company to change its name in 2003 to MCI Inc. MCI's name disappeared in January 2006 after the company was bought by Verizon.
Video MCI Communications
Histori
Pendirian
MCI was established as Microwave Communications, Inc. on October 3, 1963 with John D. Goeken named the first president of the company. The initial business plan was for the company to build a series of microwave relay stations between Chicago, Illinois and St. Louis. Louis, Missouri. The relay stations will then be used to interact with long-distance two-way radios used by truckers along Route 66 AS or by barges at the Illinois Waterway. Long distance communications services will then be marketed to shipping companies that are too small to build their own personal relay system. In addition to the radio relay service, MCI immediately made plans to offer voice services, computer information, and data communications to business customers who were unable to pay for AT & P's TELPAK services.
Beginner businesses begin the process of raising capital and applying to the Federal Communications Commission (FCC) for the appropriate license. The deepening of early applications of Microwave Communications between 13 February 1967 and 19 April 1967 resulted in the recommendation that the FCC approve MCI applications.
Another FCC decision that will affect the company is the decision of June 26, 1968 in the Carterfone case which considers AT & amp; rules that prohibit private two-way radio connections to the telephone network are illegal. AT & T quickly sought a reversal of the verdict, and when the FCC rejected their request, AT & T brought charges against the FCC in the US Court of Appeals. The FCC decision is upheld, thus creating a new industry: non-Bell devices can be connected to the telephone network as long as the manufacturer meets interface standards.
In 1968, William G. McGowan, an investor from New York with experience in improving venture capital, met with the Microwave Communications council to discuss the financing plan for the business. As a result of the meeting in June and July, Microwave Communications America, Inc. (MICOM) was established on August 8, 1968 as an umbrella company to help build a national microwave relay system. McGowan also invested in a new company large enough to pay off all debts from the combined business and create a cash reserve. The investment also gave McGowan a stake in the company and seats on board.
Permissions and build-out
Despite the 1967 recommendation that the MCI application be approved, final authorization for MCI to commence operations was postponed until after H. Rex Lee became the FCC's Commissioner in October 1968. After Lee joined the commission, MCI initiated a series of submissions including proposals for low-cost education television networks designed to show MCI as being more flexible for public needs than AT & T. When MCI does this, the Presidential Task Force on the Communications Policy issues a report recommending that specialized public operators be allowed free access to private line businesses.
The FCC issued its final decision on Docket 16509, the MCI license request, on August 14, 1969. With a 4-3 decision MCI was licensed for the operation. This decision was immediately appealed by AT & amp; T, and after the rejection of the appeal by the commission, AT & amp; T filed a lawsuit to the US Court of Appeals for the decision to be canceled.
Following FCC approval for MCI to start building microwave relay stations between Chicago and St. Louis. Louis, Microwave Communications of America began to form a subsidiary corporation and file applications with the FCC to create microwave relays between other city pairs. Between September 1969 and February 1971, fifteen new regional airlines were created, allowing interconnection between a number of major cities in the United States. In July 1969, MICOM also purchased an equity position at Interdata, a regional independent carrier applying to build a microwave relay chain between New York City and Washington, D.C. MCI began selling data transmission services to paying customers on January 1, 1972.
To pay for the microwave transmissions and relay equipment needed to build, MICOM began a series of private equity offerings in May 1971. In July 1971, MICOM was restructured into MCI Communications , and the restructured company began the process of absorbing regional operators into one company. MCI went public on June 22, 1972, selling its initial offer of 3.3 million shares.
In the 1970s, Western Union organized the property of its cable system and its telegraph line rights into a subsidiary called Western Union International, which was then sold to Xerox for aspiration of the planned in-town office network. In 1982, he sold the subsidiary to MCI Communications, who named it MCI International and moved its headquarters from New York City to Westchester County, New York.
In 1983, in conjunction with Michael Milken and Drexel Burnham Lambert, the company issued a $ 1.1 billion hybrid security - at the time of the largest debt financing in history. Financing allows company management to declare an additional $ 500 million in cash in their balance sheets so that customers, suppliers, and investors will know they are financially strong. The immediate effect is that management is no longer forced to spend so much time to raise capital. In 1990, MCI has become the country's second largest telecommunications company, building a fiber-optic network covering more than 46,000 miles. The company offers more than 50 services in more than 150 countries including voice, data and telex, MCI Mail and MCI Fax.
Anti-trust settings
When faced with issues that compete with AT & amp; T, who at the time had a government-backed monopoly on telephone service, moved to Washington, D.C. to be close to federal regulators and lawmakers. MCI orders interconnection from local exchange operators, which in most cases are Bell Operating Company, owned by AT & T. The relationship between MCI and the Bell Operating company is not typical of suppliers and customers, as local operating firms are generally reluctant to do business with companies whose parents are trying to get out of business. In a decision that became a turning point in the competitive telecommunications industry, Illinois Bell cut the MCI circuit for what MCI said there was no other reason than to hold back trade. MCI filed an antitrust suit against AT & amp; T in 1974, and ultimately transformed the telecommunications industry. On June 13, 1980, the Chicago jury compensated MCI $ 1.8 billion to be paid by AT & amp; T. The lawsuit, coupled with the Justice Department antitrust lawsuit, was also brought against AT & amp; T, ultimately causing the Bell system to break voluntarily.
Merger offers
In 1991, British Telecommunications PLC bought 20% of the company and then made an offer to buy the remainder in 1996. At the same time, GTE, now part of Verizon, made an offer to buy MCI for all-cash purchases. While this offer is being considered by the MCI board, WorldCom, Inc. announced that they were also interested in buying MCI and making a bid higher than BT or GTE offer. On November 10, 1997 in a $ 34.7 billion stock exchange transaction, MCI received a purchase from WorldCom. On September 15, 1998, the new company, MCI WorldCom, opened for business.
Maps MCI Communications
MCI Innovation
Following the opening of the long-distance market in 1984, companies such as MCI and Sprint were able to compete for customers with AT & amp; Q. One of MCI's initial advertising success stories is hiring the same actors used in previous AT & AT advertising. As in AT & amp; T, the female actor was crying. In AT & amp; T, when the husband asked why, the wife replied, "he said he loves me" refers to a conversation that has just ended with a son who is in a far part of the country. This is part of the highly effective "Range" advertising strategy of AT & amp; In the MCI version, when the husband asked the wife why she was crying, she replied, "I just received my phone bill"... after that the voice of an announcer stated "You do not talk too much, you just pay too much. This New Distance Telephone Country. "The ad was created by Ally & amp; Gargano.
Even before a competitive long-distance market emerged, MCI created (in the late 1970s) a subsidiary named MCI Satellite, Inc. The idea is that satellites can provide 'remotely' services from anywhere to anywhere without having to build thousands of miles of terrestrial network facilities. In early 1971, MCI and Lockheed Missiles and Space Company created a joint venture called MCI Lockheed Satellite Corp., which was the first company to request FCC authorization as a Specialized Public Operator using satellite-based communications. A year later, MCI and Lockheed searched for additional funding sources and Comsat Corp entered a company renamed CML Satellite Corp. Needing cash, MCI sold its share of the company to IBM Corporation in 1974 (Lockheed also later distributed to IBM). IBM and Comsat took Aetna Insurance Company as their third partner and renamed Satellite Business Systems (SBS). In a different fate, IBM, who years later became the sole proprietor of SBS, sold its satellite subsidiary back to MCI in 1985, a purchase price of $ 400 million, which essentially gave MCI the financing it needed to continue its expansion.
In 1975, MCI began experimenting with offering voice telecom switches in direct competition with AT & amp; T. Up to then MCI sells voice and point-to-point voice services using their microwave relay backbone. Starting with two Tandem Digital (DTS) voice transfer systems specially designed for them by Collins Radio Company in Cedar Rapids, Iowa (then division of Rockwell International), MCI began offering a switch-switched competitive switch service using a combination of their own microwave circuitry and leased circuits from AT & T available to them from important Carterfone decisions. One of its earliest customers was CNA Insurance in Chicago, served by one of two Collins systems located at the MCI facility on the 21st floor of John Hancock building in Chicago. The second Switch Collins is located at the MCI facility in New York City and sells voice services to various customers including RCA Global Communications under the MCI "Execunet" banner service. The experiment proved successful and the third switch was purchased from Danray Corporation (later purchased by Northern Telecommunications, now Nortel) and installed at the MCI Chicago facility alongside the Collins system. When GE later purchased RCA and shared it, MCI purchased RCA Global Communications division. Many Danray switches are purchased and placed at strategic points from their service area to be the first competitor to be eligible for AT & amp; long distance voice service. T for business.
MCI was the first company to use single-mode fiber cable (standard has multi-mode), manufactured by Siecor, a joint venture between Siemens Telecom and Corning Glass Company. Named as MAFOS (Mid-Atlantic Fiber Optic System), fiber cable ran between New York City and Washington D.C. and was activated for service in 1984. Finally, single-mode fiber became the standard for US telecom operators.
The next marketing strategy used by MCI is Friends & amp; Family plans, the type of initial loyalty program. In this program, customers will receive a tariff reduction when calling the number they have entered in their "call circle", which can contain up to 20 MCI customers.
The company also introduced a telephone call service called "1-800-COLLECT". Actor Phil Hartman, Chris Rock, and Arsenio Hall starred in some 1-800-COLLECT ads, but the most commonly spoken spokesman is the fictitious Eva Savealot, played by actress Alyssa Milano. The related services and phone numbers were eventually purchased by another company, which in 2014 still offers phone call service collect calls, albeit for a greatly increased price.
In 1995, MCI introduced 1-800-MUSIC-NOW, an online music store and short phone-based.
Beginning in late 1982, MCI developed data networks using the CCITT X.25 packet switching protocol and an e-mail service called MCI Mail. It was launched on September 27, 1983. There were other commercially available electronic mail systems, such as IBM's Professional Office System (PROF), but they did not interact with each other until 1989 (see below). The CCITT X.400 standard was developed in 1984 but is not destined to play an important role in email interconnection. During this time, Vint Cerf (one of the developers of the TCP/IP protocol) is vice president of Engineering for Digital Information Services MCI and leads the development of MCI Mail.
In the mid-1980s, MCI partnered with IBM and the Merit Network (network run by university triads in Michigan) to respond to the NSF National Science Foundation's proposal to develop a high-speed telecommunication network called NSFNET. This network uses the TCP/IP protocol that has been developed by the US Department of Defense ARPANet and is a direct pioneer to the Internet. In 1988, Vint Cerf worked at CNRI and gained support from MCI and permission from the Federal Networking Council to connect MCI Mail with NSFNET. In 1989, this was the first commercial e-mail service to do so. Soon, most other commercial e-mail providers also get permission to interconnect to the Internet, leading to their interconnection with each other.
In 1994, the NSF announced that it would end NSFNET operations and support the development of Network Access Point operations to connect NSFNET-connected networks. The NSF also proposed that an academic research network be built called High Speed ​​Backbone Network Services (vBNS) and MCI respond. MCI also built a separate MCI.net commercial internet service. From 1995 to 1998, the MCI network was an integral part of the global Internet backbone. MCI's commercial Internet services are sold to Cable & amp; Wireless as part of the incorporation of MCI with Worldcom that year.
MCI also tried to try on television in the mid-1990s. They partnered with News Corporation to form American Sky Broadcasting, named after the English satellite TV service News Corps. They intend to broadcast from two satellites in 110-degree orbital slots; but the effort never started broadcasting, possibly because of the crowded satellite TV area. Orbital slot and uplink center sold to EchoStar; the planned satellites Tempo 1 and Tempo 2 are sold to PrimeStar and have since been reused by DirecTV.
Violent Risk on MCI
MCI and other inter-exchange operators (IXC) were all heavily influenced by the Telecommunications Act of 1996. The original intention of the Act was to provide more competition but the bill actually did the opposite. Implementation of the Act led to a complete reversal of the growth of the telecommunications sector. Where the divestment of AT & amp; T (Ma Bell) in 1984 caused dozens of established long-distance companies, the Telecommunications Act of 1996 provided for consolidation where today in 2016 only AT & amp; T, Sprint & amp; Verizon exists. Within two years of ACT, MCI was part of a consolidation effort that started with Worldcom buying them and ultimately led to bankruptcy and loss of retirement for their employees and was eventually absorbed into Verizon.
The end of MCI marks the end of an era in which the global telecommunications market is evolving through widespread innovation, customer service, and high growth fostered by free markets open to a large number of competitors. Today, the telecommunications market is an oligopoly driven by the opposite form of government involvement that created the outbreak of Ma Bell in 1984.
See also
- Bell System divested
References
Source
-
History of MCI: 1968-1988, Early Years . Dallas: Heritage Press. LCCÃ, HE8864.M375C36Ã, 1993. - Kahaner, Larry (1987). On The Line . Warner's book. ISBNÃ, 0-446-38550-6.
External links
- MCI Inc. on Wayback Machine (April 12, 1997 and May 16, 1997 are functional links of Former MCI Communications)
- MCI William G. McGowan, 1968 to 1991 (The online exhibition produced by Hagley Museum and Library on the life of MCI CEO William McGowan)
Source of the article : Wikipedia
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