MCI WorldCom Will Offer Internet, N.Y. Phone Service

MCI WorldCom Inc., the No. 2 U.S. long-distance company, said Wednesday it plans to launch an Internet access service for consumers--a business it was forced to exit last year--and offer local telephone service in New York state.

MCI Communications Corp. was forced to sell its Internet business to gain regulatory approval for its $40-billion acquisition by WorldCom Inc. in September.

MCI WorldCom also plans to offer local phone service in New York state by leasing the phone network of Bell Atlantic Corp., the incumbent company in New York.

MCI, before it was acquired by WorldCom, tried to sell local service in New York and several other states in 1997 by reselling the Baby Bell services. MCI stopped marketing those services in January 1998, saying it was unprofitable.

MCI WorldCom said it expected its fresh attempt to be more successful because of a recent Supreme Court ruling that revived federal rules designed to pry open to competition the $100-billion market for local telephone service.

Under the 1996 Telecommunications Act, the Baby Bells cannot offer long-distance service in their home territories until they open their local markets to competition.

Shares of MCI WorldCom were down 88 cents to close at $78.06 on Nasdaq.