The Network World 200 at ten

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How we did it

Revenue and profit data for companies whose fiscal years ended in November '03, December '03 or January '04 came from 10K statements filed with the Securities and Exchange Commission or, where those were unavailable, directly from the companies.

For companies with fiscal years ending other than November, December or January, we gathered revenue and profit data from their last four quarters of financial reports, taken from 10K and 10Q statements filed to the SEC. In this way, we are comparing the financial results of the same calendar year for all companies, otherwise known as "trailing 12 months."

The company just recently completed auditing its 2002 results. The restatements issued as part of that process show MCI's sales dropping from $39 billion in 2000, to $38 billion in 2001 and $32 billion in 2002. Net losses were $49 billion, $16 billion and $9.2 billion, respectively.

For 2003, the company has been filing monthly operating reports with the U.S. bankruptcy court. These show a bleak picture. Revenues for the year are down 25% to $24 billion and losses for the year stand at $58 million. MCI emerged from bankruptcy last week. Clearly, MCI has its work cut out for it in terms of winning back customers.

Now consider the big kahuna of telecom, Verizon, third on the list with sales of $68 billion. Besides being the largest company, it is the nation's largest wireless carrier, with wireless accounting for 33% of revenue.

Verizon is launching next-generation data services that support speeds of 300K to 500K bit/sec. To attract more business customers, Verizon is building out its national fiber network in a program called Enterprise Advance. This program is expanding the "reach of existing products - such as long-distance, data, fiber rings and optical transport" and serving as a platform for new IP-based services such as VoIP and VPNs.

It also is having success bundling services, with 48% of its residential customers buying local service in combination with either long-distance, DSL or both. The company says it has 2.3 million broadband customers and "long-distance is now a $2 billion business, up almost 20% for the year."

The world has changed.

Speculation is still rife that additional telecom consolidation is in the offing, which will perhaps further reduce the number of companies that can claim they have graced the NW200 since its inception.

But the NW200 beat will go on.

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Copyright © 2004 IDG Communications, Inc.

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