WorldCom embarks on recovery plan

Troubled telco changes name back to MCI and files for Chapter 11

Troubled telco WorldCom announced last week that it will change its name back to MCI as it files for fast-track Chapter 11 reorganisation with the US Bankruptcy Court for the Southern District of New York.

Michael Capellas, chief executive of MCI, said: "Our company has demonstrated a new fast and focused attitude, and a commitment to emerge from Chapter 11 later this year as a leaner, stronger competitor."

Previously called MCI WorldCom, the company dropped the MCI tag in late 2000 after its merger with Sprint. Now it is returning to its old name in an effort to shrug off WorldCom's poor image.

Capellas said the company will focus on strengthening core assets, executing its three-year business plan, and solidifying its position as the industry's leading IP communications provider.

Despite its troubles, channel partners were positive about the firm's prospects.

Ted Schuman, chief executive of reseller PlanetOne, said: "It will emerge from bankruptcy with a lot less debt than competitors, and it has aggressive plans to take on a lot of markets."

David Morken, president of Bandwidth.com, said: "It is back on track, and going back to the MCI name, which has always been known for credibility, was a wise move."