JACKSON, Miss. (February 8, 1996) --
WorldCom, Inc. (Nasdaq:WCOM) and GTE Corp. (NYSE:GTE) have announced
the signing of a multi-year agreement for WorldCom, Inc. to become
the predominant provider of long distance interLATA telecommunication
services for GTE affiliates across the country.
Bernard J. Ebbers, president and chief executive officer of
WorldCom, Inc., said the agreement further demonstrates that LDDS
WorldCom is well positioned to take advantage of business
opportunities in a rapidly changing telecommunications
marketplace.
"Our domestic and international network is uniquely suited to
supply GTE the level of service necessary to provide its customers
the highest quality long distance services," Ebbers said.
"We look forward to this opportunity to become the predominant
long distance provider for one of the largest and most successful
telecommunications companies in the world."
Charles R. Lee, chairman and chief executive officer of GTE Corp.,
also praised the landmark agreement, made possible in part as a
result of new telecommunications legislation signed into law
today.
"Our association with LDDS WorldCom represents an important
step in GTE's plan to re-enter the interLATA market," Lee
said. "We are confident that WorldCom, Inc. will provide us and
our customers working through us with an excellent level of
service."
A LATA (Local Access and Transport Area) represents a geographical
area that often coincides with telephone area codes. The new
telecommunications legislation generally allows local exchange
carriers, such as GTE, to provide long distance service across these
LATA boundaries (interLATA) as well as services within these areas
(intraLATA).
LDDS WorldCom is an interexchange carrier, generally providing
services on an interLATA basis.
With net income of $2.6 billion and revenues of $20 billion in
1995, GTE is one of the largest publicly held telecommunications
companies in the world. GTE is also the largest U.S.-based local
telephone company and a leading cellular service provider with
wireline and wireless operations that form a market area covering
more than one-third of the country's population. GTE also is a
leader in government and defense communications systems and
equipment, aircraft-passenger telecommunications, directories and
telecommunications-based information services and systems.
One of the largest long distance telecommunications companies in
the United States, WorldCom, Inc. offers 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.
