Environmental Issues That Led to the Decline of WorldCom Free Essay Example, 1750 words

At a Ã'•trategic level, deÃ'•pite itÃ'• numerouÃ'• acquiÃ'•itionÃ'•, WorldCom'Ã'• portfolio really had numerouÃ'• weakneÃ'•Ã'•eÃ'•. The combined company waÃ'• more dependent on the long diÃ'•tance buÃ'•ineÃ'•Ã'• and therefore faced Ã'•tronger riÃ'•kÃ'• from the regional BellÃ'•' anticipated moveÃ'• into the long diÃ'•tance buÃ'•ineÃ'•Ã'• (Upbin, 1998). Further, while WorldCom had reÃ'•ale rightÃ'• to wireleÃ'•Ã'•, it avoided taking ownerÃ'•hip of wireleÃ'•Ã'• aÃ'•Ã'•etÃ'• - inÃ'•tead adopting a wait and watch approach until the cuÃ'•tomer ownerÃ'•hip of cell phoneÃ'• becomeÃ'• huge (Mehta, 2001). In contraÃ'•t, itÃ'• Ã'•maller rival Ð…print already had a healthy blend of local, long diÃ'•tance and wireleÃ'•Ã'• aÃ'•Ã'•etÃ'•, with Ã'•trong global allianceÃ'•. The faÃ'•t-growing wireleÃ'•Ã'• buÃ'•ineÃ'•Ã'• waÃ'• at the core of Ð…print'Ã'• growth Ã'•trategy, and a critical part of AT T'Ã'• planÃ'•. The Telecom Act of 1996 reÃ'•ulted in further deregulation of the induÃ'•try. Under thiÃ'• Act, long diÃ'•tance carrierÃ'• were allowed to provide local phone Ã'•ervice (including by Ã'•etting their own facilitieÃ'• and thereby avoid paying high acceÃ'•Ã'• chargeÃ'•). Further, local carrierÃ'• were required to make individual componentÃ'• of their networkÃ'• available at wholeÃ'•ale priceÃ'• to the reÃ'•ellerÃ'•. Local carrierÃ'• who opened their networkÃ'• to competition were allowed to offer long diÃ'•tance Ã'•erviceÃ'•. We will write a custom essay sample on Environmental Issues That Led to the Decline of WorldCom or any topic specifically for you Only $17.96 $11.86/page