MCI Responds to AT&T's Claims

MCI fired back at AT&T with a public statement again accussing AT&T of attempting to obstruct its emergence from Chapter 11. Specifically:


MCI refuted the claim that national security has been compromised by routing government calls through Canada


MCI reiterated that least cost routing is an acceptable and legal industry practice santioned by the FCC and even used by AT&T


MCI stated that it routes only a small percentage of its traffic through Least Cost Routing companies, and only 0.5 percent of that traffic through Onvoy, yielding a savings to MCI of 0.02% of the company's total telecommunications expenses. MCI insists that the amount of money at issue in any such claim would be immaterial to plan of reorganization.

Separately, the U.S. bankruptcy court overseeing its case approved MCI's settlement with the Securities and Exchange Commission. The settlement calls for a civil penalty to the company of $2.25 billion to be satisfied by a $500 million cash payment and $250 million in common stock to shareholders and bondholders upon emergence from Chapter 11 protection.
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