New path to local service: UniDial tries WorldCom offering

WorldCom, the company analysts credit with creating a vibrant long-distance resale market, is hoping to do the same for local resale.

The carrier, which offers local service to competitive local exchange carriers in seven markets, has signed long-distance reseller UniDial as its first beta customer and expects eight to 10 more beta customers this year, said Dale Thompson, WorldCom's director of wholesale marketing.

"There's no reason we can't do what we did in the long-distance market for the local market," said Thompson.

Compared with the 10% to 25% discounts that incumbent carriers typically offer, WorldCom offers discounts of 30 to 35% or more, Thompson said. Initially, CLECs will fax orders to WorldCom, but Thompson expects to offer an electronic interface in the first quarter of 1999.

WorldCom's facilities can reach 50% to 75% of the business customers in the markets it serves, said Thompson. Offerings at first will include private line, dial tone and intraLATA toll services. Future plans include ISDN and voice mail. The company expects to offer local service to CLECs in all U.S. locations where it owns local facilities in 1999.

Reselling WorldCom's local service is one part of UniDial's two-part local strategy, said Kevin Shady, UniDial's vice president of network services. UniDial also has made a definitive agreement to purchase CLEC Metracom Corp., which offers local service through resale agreements with Bell Atlantic.

WorldCom's strategy of pre-announcing states where it will wholesale local service will help UniDial determine where it will seek CLEC status, said Shady.

Through another new agreement, UniDial will resell WorldCom's frame relay service under its own name. Previously, UniDial sold the service under the WorldCom name through an agent agreement.