Soft domination and power at worldcom

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Soft domination and power at worldcom

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They also maintain that the merger will inject strong competition into the local telephone business, and that Regional Bell Operating Companies RBOCs are entering long distance so fast that their rivalry will mitigate any gain in monopoly power by a merged MCI WorldCom-Sprint. Unfortunately, the evidence to support these hyperbolic claims is insufficient. All categories of customers would be harmed, from the smallest households to the largest mega- corporations. The supposed benefits are mostly imaginary, and depend on seismic changes in telecommunications technology that are much more radical than informed observers expect. If MCI WorldCom and Sprint are kept separate rather than allowed to combine, the gains in efficiency and technological progress are likely to be enhanced. In contrast, a merger would reduce variety and innovation and lead to higher prices. A postponement by the FCC could be appropriate as well.

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This Summary and Conclusions section highlights important parts of the Report and sets out our conclusions. From until , WorldCom suffered one of the largest public company accounting frauds in history. Rather, the fraud occurred as a result of knowing misconduct directed by a few senior executives centered in its Clinton, Mississippi headquarters, and implemented by personnel in its financial and accounting departments in several locations. Ebbers, ran the Company.
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