MCI to Add Cellular Firm to Its Network

MCI unveiled plans Monday to add cellular phone service to its communications lineup, reflecting the trend among telecommunications companies to provide one-stop shopping for customers.

MCI plans to buy Nationwide Cellular Service Inc., the nation’s largest reseller of cellular service, for $190 million in cash, or $18.50 a share.

Nationwide, based in Hempstead, N.Y., reported revenue of $213 million in 1994 and has 275,000 customers in cities including Los Angeles, New York and Washington.

Rivals AT&T; and Sprint already provide cellular service.

Telecommunications companies are scrambling to position themselves for the next decade, when survival will be defined in large part by a company’s ability to package an array of communications services to meet an individual customer’s needs, telecommunications executives have predicted.

MCI plans to package the cellular service with long-distance and eventually local phone service, spokesman Kevin Inda said.

By reselling, one company buys another’s cellular service at a wholesale rate, then sells the service under its own name. In this way, the company doesn’t have to build its own expensive transmission facilities, called cells, throughout the areas it serves.

Mark Lowenstein, an analyst with the Yankee Group, says MCI has a good opportunity to pick up customers by offering a variety of communications packages in a range of prices.

MCI’s plan is consistent with its strategy to provide wireless services. Unlike its rivals, MCI has chosen not to build its own transmission facilities or acquire licenses to provide wireless services.

Earlier this year, MCI stayed out of a contest to acquire licenses to provide the next generation of cellular service, known as personal communications. Both Sprint and AT&T; came away big winners.

The new service promises to be more mobile and cheaper than existing cellular service.

MCI has said it will seek to acquire or make alliances with existing or future wireless communications providers. The Nationwide deal is subject to approval by federal regulators.

Washington-based MCI is the nation’s second-largest long-distance company.

Rival AT&T; is the largest provider of cellular service.

Nationwide Cellular shares soared $6.19 to $23.69 on Nasdaq, while MCI inched up 12.5 cents to $21.