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EDITIONS
Tuesday, 30 July, 2002, 08:48 GMT 09:48 UK
WorldCom customer exodus begins
WorldCom headquarters
At its height WorldCom was valued at $175bn
Disgraced WorldCom has transferred about 2 million mobile customers to other service providers as it attempts to establish a viable business model.

The firm - which recently filed the biggest bankruptcy in US history - has also hired a new finance boss and chief restructuring officer as it struggles to knock itself back into shape.

WorldCom filed for protection from its creditors earlier this month after admitting to a $3.9bn (2.4bn) accounting fraud in June.

The firm, which has 85,000 staff in 65 countries, is desperately trying to keep its core business operating while it clears up its murky past.

Telecoms shake-up

WorldCom is to close its loss-making wireless business by October, agreeing to transfer customers to AT&T, Verizon and two other rivals.

But it has vowed to keep the main rump of its internet business in one piece.

The US telecoms sector is likely to face a big shake-up in the months ahead.

Three large telecoms firms - WorldCom, Qwest and Global Crossing - have all admitted to improper accounting in the recent spate of Wall Street scandals.

Fallen star

In a separate move, WorldCom stock was ditched by the Nasdaq share index.

The move underlines just how far WorldCom has fallen from its position as a star of the hi-tech firmament.

The future delisting caused the already battered share price to lose almost one third of its value in European trading on Tuesday.

Nasdaq announced that it will expel WorldCom for failing to register the appropriate documents with the US financial watchdog, the SEC.

WorldCom is already under investigation from the regulatory authorities while US lawmakers will also try to establish what went wrong at the firm.

WorldCom

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29 Jul 02 | Business
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