The question is whether these companies bounce back with their current leadership. It’s highly probable that at least one of the three CEOs will be ousted. Here’s what you can expect:

WorldCom, like competitor AT&T, is restructuring. The company will squarely focus on building business service revenue, while spinning its declining consumer division into a separate unit with its own tracking stock called MCI. The network assets and high-growth business services will operate under the WorldCom banner.

But the plan is flawed from a customer perspective. WorldCom made clear it would not offer lower service rates to encourage long-term contracts. So customers may not get the same cost-saving deals they’ve come to expect. Another problem is that WorldCom is not known for stellar customer service. I’ve talked with WorldCom customers who aren’t sure who their sales representatives are or who are unhappy about services not being delivered in a timely manner.

While WorldCom, AT&T and Sprint have to worry about shareholder return and profits, I don’t think there is a CEO in the industry more blinded by the bottom line than WorldCom’s Bernie Ebbers. Don’t be surprised to see him part ways.

AT&T CEO C. Michael Armstrong might not be far behind. Armstrong disappointed Wall Street and analysts when he announced his major restructuring in October. He showed signs of weakness for the first time since his risky acquisitions of TCI and MediaOne, according to one analyst.

Armstrong had always stuck to his guns in arguing that AT&T’s cable acquisitions would pave the way to innovative services while letting AT&T bypass incumbent local exchange carriers.

Now he’s wavering, saying the company’s decline in market valuation has been nothing short of alarming.

Armstrong has said publicly he sees himself retiring after 2002, but he may not last that long.

Sprint’s Bill Esrey has the best chance of making it through 2001, to continue his 15-year reign as CEO. Sprint has not announced a restructuring plan, but instead is trying to recover momentum after having lost precious time trying to merge with WorldCom.

Sprint’s consumer voice business is not declining as fast as its competitors’. Also, Sprint’s wireless and Internet service revenue grew by 50% in the third quarter of 2000 compared with the same quarter of 1999. These are Sprint’s saving graces.

If Sprint can continue to post strong growth in Internet and wireless while improving data service growth, Esrey’s position should be secure.