MCI Corp has announced a joint venture with the Pennsylvania- based utilities company DQE Inc, and formed Pittsburgh Fiber, a firm that plans to build an operate a fiber optic network for business telecoms in the Pittsburgh area. MCI, primarily a long distance and international telco, is interested in owning its own local connections, as the cost of leasing connections from Regional Bells is 80% of the retail price, which makes the whole business unprofitable. DQE has already built part of a local access fiber optic network, and the joint venture will further expand the fiber, and manage the network. The agreement suggests that MCI is coming into line with it future parent WorldCom Inc’s strategy of buying up companies with local fiber networks, evident from the acquisitions of MFS Communications (CI No 2,985) and Brooks Fiber Properties Inc (CI No 3,260). The networks can be used for offering more lucrative door-to-door business and wholesale telecoms and data services.
