Philadelphia, Aug 04: Bankrupt telephone company WorldCom Inc.'s initial review has found no evidence that it improperly routed telephone calls, The Wall Street Journal reported on Monday, quoting a person familiar with the situation. WorldCom, which is changing its name to MCI, declined to comment. The company is scheduled to file a report on Monday afternoon with the US Bankruptcy Court for the Southern District of New York to outline its internal review of routing procedures, as well as updated financial information.
Last week, larger rival AT&T Corp. accused WorldCom of improperly diverting US calls, including those by government agencies, to Canada to avoid hefty connection fees, adding millions of dollars to AT&T's expenses and luring away lucrative clients.
AT&T objected to WorldCom's plan to emerge from bankruptcy, arguing it prevents the company from seeking redress to its claims. AT&T also plans to sue WorldCom for damages.
According to the WSJ, two telephone companies have claimed that AT&T has engaged in similar routing practices. The companies were Anchorage, Alaska's General Communications Inc., known as GCI, and Mexican telephone company Telefonos de Mexico SA.
Bureau Report