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MCI Launches Internet Telephony Service Plan
[June 24, 2005]

MCI Launches Internet Telephony Service Plan


MCI has entered into the VoIP industry with its Internet telephony-based calling service plan called Neighborhood Broadband.

BY JOHANNE TORRES
TMCnet VoIP Minute Watch Columnist

It’s official. MCI has entered into the VoIP industry with its Internet telephony-based calling service plan called Neighborhood Broadband. According to Reuters, the telecom began trials of the service last week making it available for about 5000 customers in the U.S. This is not MCI’s first VoIP plan launched this year. The company also launched an enterprise VoIP plan for Europe last Monday.



Reuters said the service’s prices are similar to others offered by Internet telephony providers. The company will offer unlimited calling for $29.99 per month and 500 minutes per month for $19.99.

"Once the trial is finished, we'll determine if changes need to be made or if we'll move forward with this service," MCI’s Natasha Haubold told Reuters.


Today’s news might send mixed signals to us in the industry. You might remember that in 2004 both MCI and AT&T shocked us all by announcing the companies’ shift in plans by dropping consumer-oriented products and services and concentrating on servicing business customers only. These announcements were later on followed by Verizon’s decision to buy MCI for U.S. $8.6 billion and also AT&T being acquired by SBC for U.S. $16 billion.

MCI’s VoIP-based calling service project began to shape up when the company announced an enterprise version of the service in the European market last week. MCI began its European roll-out of MCI Advantage, a portfolio of IP-based services designed for companies wanting to converge their voice and data networks this month. MCI Advantage, which includes networked voice over IP and Hosted IP telephony, will be introduced throughout the next year. The initial offering, MCI Advantage IP Integrated Access, is now available in the UK and will soon be available in France, Germany and the Netherlands.

"MCI Advantage IP Integrated Access allows customers to evolve to a converged networking solution whilst reducing expenses," said Roberta Mackintosh, senior director of product management, pricing and analysis for MCI in Europe about the company’s announcement last week. "With MCI Advantage we are able to provide a portfolio of services that meet the evolving voice and data needs of our customers."

After reading today’s news report, I was left wondering why would MCI launch a VoIP-based calling service after the company announced it would drop consumer-oriented products and services? Additionally, why would MCI go ahead with VoIP plans for the consumer market if Verizon (soon to be MCI’s parent company) already offers VoiceWing?

As always, I will keep you posted on any developments on this story as soon as more info becomes available. Keep yourselves tuned in!

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Johanne Torres is contributing editor for TMCnet. To see more articles by Johanne Torres, please visit:

http://www.tmcnet.com/tmcnet/columnists/columnist.aspx?id=100006&nm=Johanne%
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