WILLIAMS AND WORLDCOM SETTLE LAWSUITS TO MUTUAL BENEFIT
Jackson, Miss. and Tulsa,
Okla., July 9, 1998 - WorldCom, Inc. (NASDAQ: WCOM) and Williams
Communications (NYSE: WMB) today announced they have reached
settlement in a dispute primarily concerning use of a single strand
of fiber in the network acquired by WorldCom in 1995. In addition,
both companies have agreed to forge a closer working relationship
in order to better accommodate the capacity demands of the
burgeoning telecommunications industry.
Williams had filed a lawsuit in Tulsa County District Court in
March, and WorldCom filed an answer and counterclaim in May.
"These claims arose primarily from the complexity of the
transactions between our two companies. We applaud the efforts of
negotiators for both companies in resolving these issues quickly,
without a protracted legal battle, and with a minimum of concern to
our customers," said Howard Janzen, president and chief
executive officer of Williams Communications. "We are intent on
forging a positive working relationship between Williams and WorldCom
that builds on our mutual interests and allows each of us to deliver
a full range of economical, high-quality service to our
customers."
Williams retained a single fiber throughout the network it sold to
WorldCom in 1995. The settlement gives Williams the right to
purchase, with restrictions, a single strand of fiber on
WorldCom's constructed long distance networks, as extended since
the 1995 acquisition of WilTel. The single fiber is to be used for
carrying video and Internet traffic but excludes fax or voice
transmissions throughout the public switched network. Access to
WorldCom's local and long distance networks acquired through the
subsequent acquisitions of MFS, Brooks Fiber Properties, MCI, and any
future acquisitions are excluded from the right to purchase.
All restrictions on Williams' use of that retained fiber will
expire in July 2001, making it available to support long distance,
data and voice applications in addition to other services after that
time.
WorldCom also will have the right to purchase without
restrictions, a single fiber on selected routes along Williams
Network's existing network as well as its fiber in
development.
"The Williams Companies and WorldCom have developed a unique,
competitive relationship, whereby we are both strong vendors as well
as customers of each other. This prompt settlement is further
evidence of our spirit of cooperation," said Bernard J. Ebbers,
WorldCom's president and chief executive officer.
About Williams (NYSE: WMB) Williams, through its subsidiaries, is
the nation's largest-volume transporter of natural gas and
provides a full range of traditional and leading-edge energy and
communications services. Its communications enterprises include a
nationwide wholesale fiber-optic network, nationwide single-source
business communications systems integration; international video
satellite and fiber-optic transmission; multipoint video and
audio-conferencing; satellite business television applications.
Company information is available at http://www.twc.com and
http://www.wilcom.com
About WorldCom (NASDAQ: WCOM) WorldCom is a global
telecommunications company with 1997 annual revenues of $7.5 billion.
Operating in more than 50 countries, the company is a premier
provider of facilities-based and fully integrated local, long
distance, Internet and international voice and data services.
WorldCom's World Wide Web address is http://www.wcom.com.
