# Presentation: 925888

## December 5, 2003 

**Team 3 Project 7**
- Mike Lindamood
- John Pallotta
- Jeff Plitt
- Jennifer Yontz-Orlando

**December 5, 2003**** **

## MCI:
“Rebuilding the Brand”

**“****Rebuilding the Brand”**

## Overview

**Global Ethernet Backbone**
**Industry / Competition**
**Strengths**
**Stakeholder Management **
**Recommended Business Strategy**
**Implementation Plan**

## Communication Solutions

***Communication Solutions***

## Industry Trends

**Bundling of Telecom Services**
**Local , LD, Caller ID, Voice Mail, E-mail**
**Internet Calling**** (VoIP & Telephony)**
**Broadband (Fiber Optic Technology)**
**DSL, High Speed Data Transmission**
**Wireless (Wi-Fi) Technology**
**Wi-Fi Hot Spots, Text messaging, etc.  **
**International Growth**

## Emerging Technology

- VoIP
- Web Conferencing
- Cost Savings
- $20B Annual Growth Industry
- Barriers between IT and Telecom Blurring

## Domestic Competition within Industry 

|  | MCI | AT&T | Sprint | Verizon | SBC | BellSouth |
| --- | --- | --- | --- | --- | --- | --- |
| VoIP |   X |   X |    X |      X |   X |      X |
| Broadband |  |   X |  |      X |   X |      X |
| Mobile |  |   X |    X |      X |   X |      X |
| Long
Distance |   X
   |   X |    X |      X |   X |      X |
| R&D |  |   X |    X |  |  |  |
| Market
Share |  |   X |  |  |  |  |
| Network |   X |  |  |  |  |  |
| Global
Presence |   X |    X |  |  |  |  |
| Cash |   X |  |  |  |   X |  |

## Top Ten Ranked by Sales

**1. ****	****Nippon Telegraph and Telephone Corporation (NTT)**
**2. ****	****Verizon Communications Inc. (VZ)**
**3. ****	****Deutsche Telekom AG (DT)**
**4. ****	****France Telecom SA (FTE)**
**5. ****	****SBC Communications Inc. (SBC)**
**6.****	****AT&T Corp. (T)**
**7. ****	****MCI Corp. **
**8. ****	****Telecom Italia S.p.A. (TI)**
**9. ****	****Telefónica, S.A. (TEF)**
**10. BT Group plc (BTY)**

## Domestic LD Service

**1.****	****AT&T**
**2. ****	****MCI**
**3. ****	****Verizon**
**4. ****	****Sprint FON Group **
**5. ****	****Quest Communications**

## Mobile Services

**1. ****	****NTT DoCoMo, Inc. (DCM)**
**2. ****	****Vodafone Group PLC (VOD) - Verizon**
**3. ****	****Cellco Partnership - Verizon**
**4. ****	****Cingular Wireless LLC**
**5. ****	****Orange SA**
**6. ****	****AT&T Wireless Services, Inc. (AWE)**
**7. ****	****T-Mobile International AG**
**8. ****	****China Mobile (Hong Kong) Limited (CHL)**
**9. ****	****Telecom Italia Mobile SpA**
**10. Telefónica Móviles, S.A. (TEM)**

## Risks for MCI

**Decrease of Local and LD rates**
**Govt. Regulation of Internet Calling Process**
**Small Companies Entering Market and Diluting Customer Base**
**MCI’s Limited Wireless Presence**
**Cable Offering VoIP Via Cable Networks**
**Federal Court Mandates to Share Networks**
**Competitive Rivalry Between Existing Players: Legal action by AT &T and Verizon**

## Strengths of MCI

**UUNET**
**Largest Global IP Portal **
**50% of Global On-line Traffic**
**Loyal Customer Base**
**Government Business ($1B per year)**

## Stakeholders

**New Investors**
**Wall Street and Media**
**Customers**
**Consumers**
**Business & Government**
**Employees**
**Lenders**

## Business Strategy

**Core Competency: UUNET / Backbone**
**Local / LD Cost Reduction (# 2)**
**Utilization of Cash Reserves **
**– ****IP technology**
**Convergent Technology **
**Alliances**
**Government Business **

## Implementation Plan

**Management**
**Strategic Flexibility**
**Organizational Structure**
**Ethical and Governance**

## Management

**Continuous Mission Statement**
**“****Flat” Communications **
**Role Model for Values**
**Cross-functional Groups**

## Strategic Flexibility

**Proactive strategic flexibility will be established throughout the MCI organizational structure.**

## Slide 18

## Ethics and Governance

**Breeden Report**
**Continued compliance and implementation**
**Internal ethics training**
**Zero tolerance for non-compliance**
**All Operations within Code of Ethics**
**Internal and External Communications will use “Sharing the Commitment to Integrity”**

## Additional Implementation

**Knowledge Mgt.**
**Ability to share internal knowledge**
**Employee participation in decision making**
**Establish incentive programs**
**Organizational Learning**
**Continuous process of growth**
**Feedback from participants**
**Able to overcome previous attitudes and behaviors**

## Conclusion / Summary

**Rebuilding the Brand**
**Ethernet Backbone**
**Organizational Structure**
**Ethical Operations - Globally**