The annual global revenues of US carrier Worldcom are expected to rise more than six-fold over the next 10 years, from $ 6.9 billion in 1997 to an estimated $ 42.9 billion in 2006, Links of London Jewellery according to a report by the US investment bank Morgan Stanley Dean Witter.
The bank predicts that the companys revenues will grow at an annual rate of about 25 per to cent to 30 per cent over the next few years. It says that revenues will in particular be lifted by explosive growth in the carriers international and Internet businesses, where it describes the opportunities as huge.
According to the report, Worldcoms revenues from its international business should rise from about $ 825 million in 1997 to $ 9.8 billion in 2006, a 12-fold increase. Over the same period, the operators revenues from its Internet business are expected to rise by an impressive 21 times, from $ 540 million to $ 11.3 billion Links of London Earrings.
The authors say that Worldcom is particularly well placed to exploit growth in these areas as the result of its September 1996 takeover of MFS, the largest competitive local exchange carrier (Clec) in the USA (Telecom Markets, 299/20). The deal allowed Worldcom, which was already the fourth-largest long-distance operator in the USA, to acquire a local network in the USA as well as a number of business networks in selected European financial centres, and a successful Internet access provider, UUNet.
The strategic combination of Worldcom, MFS and UUNet makes a lot of sense, says the report. It argues that there is a significant opportunity to provide integrated local, long-distance, and data services to US customers as a result of last years Telecommunications Act, which lifted many of the barriers between these sectors ( links of london Star of David Charm).
