MCI Gives Florida Consumers One More Reason To Join the Neighborhood

But Regulators Still Have More Work To Do to Promote Competition

ARLINGTON, Va. -- Sunshine State consumers have even more reason to choose The Neighborhood built by MCISM, as their "any-distance" telephone service provider thanks to a pro-competitive vote by Florida regulators. MCI announced today it will lower its rates for The Neighborhood in many parts of the state – in part due to the approval by the Florida Public Service Commission of lower rates for wholesale access to the monopoly BellSouth network.

"Consumers are the real winners here," said Wayne E. Huyard, President of MCI Mass Markets. "By starting to tear down the barriers to telephone choice that still exist more than six years after the federal Telecom Act became law, Florida regulators are beginning to make it possible to offer The Neighborhood to consumers at an even more attractive price. But the commission still has more to do to ensure a fully competitive telecommunications marketplace in Florida."

In the next few months, the rate for service's flagship offering – The Neighborhood Complete -- will be reduced in many parts of Florida to $55.99 a month. Customers in other areas of the state will continue to enjoy the same low price of $49.99 a month. This change is dependent on BellSouth implementing without delay the Commission's decision to adjust rates.

Additional Regulatory Action Needed

While Florida regulators have taken a positive step forward, more work remains to be done before every Floridian can choose The Neighborhood, Huyard warned. The Neighborhood continues to receive a very positive response from consumers across the nation in areas where it’s available, but there are still many places where consumers lack any choice in local service, he said.

"Because the wholesale network access rates in many parts of Florida remain far too high, we are still unable to reach a large portion of the state’s consumers," Huyard said.

Currently, Florida is the only state where the Neighborhood Complete is offered on a two-tiered pricing structure – a direct result of the high rates competitors must pay BellSouth to lease portions of the public phone network. Although the commission recently lowered some rates, regulators must lower the wholesale rates even further. In particular, the commission through a focused effort should voluntarily examine the cost of switching and related elements with an eye toward implementing flat-rate switching.

The Neighborhood is the communications industry’s first credible threat to the local phone monopolies’ lock on the consumer calling market because it is the only enterprise to truly offer a fully integrated service across the country. With The Neighborhood now available in 36 states and the District of Columbia, MCI is the first communications company to truly fulfill the vision of the "any-distance" future outlined by the Telecommunications Act of 1996.

The Neighborhood frees callers from the constraints of per-minute rates, time-of-day restrictions and unnecessary boundaries between local and long-distance service. Consumers who select Neighborhood Complete will enjoy the convenience of a single company and a single invoice for all home phone service, the most popular calling features - Caller ID, Call Waiting, Voicemail, Three-Way Calling, and Speed Dial - and the ability to take advantage of free partner reward benefits, such as frequent flyer miles or movie video rentals. The entire U.S. effectively becomes one local calling area and the entire country becomes one neighborhood.

To join The Neighborhood, Florida residents should call 1-800-285-FREE or visit http://www.TheNeighborhood.com.

About MCI Group

MCI group (MCWEQ), an operating unit of WorldCom, Inc., is a leading provider of residential voice, advanced messaging and commercial communications services. MCI group offers a robust portfolio of products, including local, international and long-distance voice services, advanced messaging, and wholesale voice, dial-up Internet and data services. For more information, go to http://www.mci.com.