WorldCom offers local/long-distance bundle

In a move that counters the entry of RBOCs into long-distance, WorldCom today introduced a bundled local/long-distance calling plan for the consumer market.

The plan, dubbed Neighborhood Complete, offers unlimited local, local toll and long-distance calling for a flat rate of $49.99 to $59.99 per month, depending on location. It includes caller ID, call waiting, voice mail, three-way calling and speed dial. Neighborhood Complete is available now in 32 states, and WorldCom plans to expand the offering to all 50 states by early 2003.

The plan is being offered under WorldCom tracking stock MCI Group. The stock has been languishing recently, selling for less than $5 per share for the past several days.

With the long-distance approvals for RBOCs expected to reach critical mass over the next 12 months, MCI Group’s stock figures to be pushed even lower.

With this offering, the company hopes to be able to compete toe-to-toe with the RBOCs, said a WorldCom spokeswoman.

However, she said the offering is not in direct response to the RBOCs entering the long-distance market. Before this offering, the company was already in more local markets than any other major long-distance carrier, she said.

“This is very consistent with where we’ve been going,” she said. “For consumers, [telephone service] is evolving and changing into an any-distance market. This service is designed to attack that market very vigorously.”

To expand its local service so dramatically, though, the company has outsourced back-office functions to integrated communications provider Z-Tel. The Z-Tel relationship is contracted for five years. No financial details were announced.