• United States

June revenue up for MCI

Aug 20, 20032 mins
Internet Service ProvidersNetworking

* MCI reports latest Monthly Operating Report to bankruptcy court

MCI’s monthly revenue went up after a two-month slump. The carrier filed its Monthly Operating Report with the U.S. Bankruptcy Court for the Southern District of New York last week.

During a company employee meeting, Michael Capellas, CEO at MCI, said that the carrier actually signed 108 new customer contracts in the last two months. He pointed out again that the carrier has not lost any hallmark customers, but that doesn’t mean the carrier hasn’t lost business.

Revenue for the month of June was $2.075 billion. In May, MCI reported $2.034 billion in revenue. While not a huge increase, it’s at least a step in the right direction.

The carrier also reported that operating income in June was up $30 million to $146 million, compared to $116 million in May. Net income was up $38 million to $84 million, compared to $46 million in May.

But it’s not clear that the positive jump in the right direction will carry MCI much further. It’s likely these new contracts were signed prior to AT&T’s fraud accusations. AT&T claims MCI is illegally rerouting traffic through Canada. And that would mean the majority of the contracts were also signed before the Federal Government’s General Services Administration suspended the carrier from competing on any new government contracts until further notice.

The Department of Justice and the FCC are currently investigating the charges of fraud. And MCI also has its own internal review going on, which includes the appointment of a former FCC commissioner to MCI’s staff, Capellas says.

At press-time MCI has not yet revealed which former commissioner is working on the investigation, but Capellas said the company does plan to publicly announce the appointment in the near future.