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WorldCom Subject of FCC Probe

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From Reuters

The Federal Communications Commission said Wednesday that it was investigating allegations that WorldCom Inc. illegally routed telephone calls to skirt expensive fees paid for connecting calls.

The probe was revealed after the House Energy and Commerce Committee asked the FCC how it would respond to charges leveled by WorldCom’s rivals about the fees. The panel also requested documents about any violations of rules uncovered by the agency.

The FCC investigation into the No. 2 long-distance telephone carrier is in addition to one by the U.S. attorney in New York, as well as an internal review by WorldCom, which will change its name to MCI after emerging from bankruptcy protection.

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AT&T; Corp., the biggest U.S. long-distance carrier, has accused WorldCom of improperly diverting U.S. calls, including those by government agencies, through Canada to avoid hefty connection fees. It plans to sue WorldCom for damages.

The two biggest local telephone companies, Verizon Communications Inc. and SBC Communications Inc., also have questioned whether WorldCom rerouted phone calls to avoid fees and hide the origin of calls.

“As the expert agency it would be normal for the FCC to review such matters and we stand ready to cooperate in every way,” WorldCom spokesman Peter Lucht said.

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