WorldCom plans exit from wireless resale business

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Slowing market and pricing pressure have made resale business unprofitable|ret||ret||tab|

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WorldCom Inc. has announced it plans to exit the wireless resale business, according to a company announcement. With approximately $1 billion in revenues and nearly 2 million customers, WorldCom is the largest reseller of wireless services in the United States.|ret||ret||tab|

"After carefully assessing our business and the current market conditions for wireless resale services, we have decided to exit the wireless resale business a business that is not a core WorldCom asset," said John Sidgmore, WorldCom president and CEO. "As we exit the business, we will further strengthen our cash position."|ret||ret||tab|

WorldCom has been a reseller of wireless services for more than five years. Initially, WorldCom entered the resale marketplace as a first step toward becoming a facilities-based wireless carrier, which ultimately did not materialize. |ret||ret||tab|

Slowing market growth, intense pricing pressure and acquisition cash requirements have rendered WorldCom's position as a pure reseller unprofitable, the announcement said.|ret||ret||tab|

The multi-month process of exiting the wireless resale business will begin immediately. WorldCom has received interest from several major facilities-based carriers regarding purchase of the business. WorldCom expects to quickly evaluate its options and select an exit strategy. As it does so, some of WorldCom Wireless' 2,200 member work force will be reduced while the remainder will continue operations in the interim period.|ret||ret||tab|

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