WorldCom, Inc. Enters Cellular Resale Market With Acquisition Of Choice Cellular
JACKSON, Miss. (June 28, 1996) --
WorldCom, Inc., extending its strategy of offering competitive
telecommunications services to its customers, has entered into an
agreement to acquire Choice Cellular located in Phoenix, Arizona, one
of the top cellular resale companies in the country.
The purchase price for the privately held company was not
disclosed.
Jim Wolfinger, who founded Choice in 1993 and serves as president
and chief executive officer, will lead the cellular operations.
Wolfinger, an active participant in cellular industry issues,
recently was named president of the National Wireless Resellers
Association.
"We are extremely pleased to conclude this transaction for
Choice Cellular, and to retain the exceptional industry background
and management expertise of Jim Wolfinger," said Bernard J.
Ebbers, president and chief executive officer of WorldCom, Inc.
"In a marketplace characterized by rapid movement toward
one-stop solutions, the ability to combine wireless services like
those offered by Choice Cellular with our innovative long distance
services is essential."
Ebbers noted that, as regulations allow and as negotiations with
local exchange carriers are successfully concluded, WorldCom, Inc.
also expects to offer local telephone service in selected
markets.
Choice Cellular, the sixth largest cellular reseller in the
country with operations in the western United States, also resells
paging services.
"We are continuing to explore opportunities for alliances and
acquisitions in the wireless marketplace in order to extend the
geographic reach of our product offerings in this area," said
Ebbers. "WorldCom, Inc. has established an impressive record of
effectively using this approach, along with significant internal
growth, to deliver maximum benefit to customers and
shareholders."
Wolfinger, formerly an executive with US West Cellular, said
adding cellular resale to the suite of services offered by WorldCom,
Inc. will prove to be a vital part of the company's competitive
positioning.
"Resale particularly the resale of cellular services will be
important for full-service providers like WorldCom, Inc. as we
continue to thrive in the multi-dimensional competitive environment
that is unfolding in our industry," Wolfinger said. "The
resources of WorldCom, Inc., combined with the groundwork we have
already accomplished at Choice Cellular, position us where we need to
be as a major player in this marketplace."
Analysts expect the cellular market, including cellular, paging
and broadband PCS, to continue its dramatic growth. It is expected to
reach well over 100 million subscribers and generate revenues of more
than $40 billion by the year 2000. The cellular marketplace is
characterized by two facilities-based providers in major markets,
with some 125 cellular operators reselling services obtained at
discounts from those providers. Most resellers operate in contiguous
geographic areas and have fewer than 10,000 subscribers.
WorldCom, Inc. is one of the largest long distance
telecommunications companies in the United States, offering domestic
and international voice, data and video products and services to
business customers, other carriers and the residential market. The
company operates a nationwide digital fiber optic network in the
United States and has worldwide network capacity. The common shares
of WorldCom, Inc. trade on The Nasdaq Stock Market under the symbol
WCOM.