MCI Communications

Microwave Communications, Incorporated was begun in 1968 and used microwave radio technology to provide communication between interstate truckers. At the time, American Telephone and Telegraph (AT&T) was the only provider of local and long-distance telephone service in the country. AT&T had laid thousands of miles of copper cable in order to connect its customers throughout the United States, at considerable expense. In addition to securing rights of way and constructing the trenches for the cables, AT&T also had to purchase the cable itself at a time when copper was relatively expensive. Because of this, entry into the market was difficult, and AT&T, which established the first telecommunications network, beca

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level). The price war is primarily aimed at the highly lucrative residential market, and AT&T is clearly a favorite in such competition because it can subsidize a slowdown (or even losses) in this market with activities from other areas. Another threat facing the company is that Congress will permit the Regional Holding Companies (RHCs), such as Pacific Bell, to enter the long distance market. This would bring about increased competition which would affect all of the current companies offering long distance service, but to which the smaller companies, including MCI, are particularly vulnerable. This likelihood is made the more possible with the Republicans in control of the Congress since they have traditionally taken a pro-business stand and are likely to yield to lobbying from RHC representatives (Gooley, 1995, p. 4473). However, there are a number of opportunities which MCI can take advantage of, both in the domestic market, but also in the international arena. Domestically, the company can pursue a strategy similar to AT&T's with product diversification. This does not mean that the company would have to enter entirely new markets that have high start-up costs (such as AT&T in the network business), but instead suggests
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Approximate Word count = 2735
Approximate Pages = 11 (250 words per page)

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