FCC allays concerns over WorldCom service disruption

The US Federal Communications Commission (FCC) has reassured businesses that there should be no interruption in the WorldCom's...

The US Federal Communications Commission (FCC) has reassured businesses that there should be no interruption in the WorldCom's long-distance and Internet services.

Despite the distinct possibility that the telecommunications giant may enter bankruptcy soon, Michael Powell, the chairman of the US Federal Communications Commission (FCC), reassured business that the service should continue. "I don't think a significant disruption of service is imminent," he said.

Even if the company did go into bankruptcy Powell said he did not think that it would be "a critical situation for consumers".

Before WorldCom's troubles The FCC chairman had visited the New York investment community to gauge confidence in telecomms. "I left with greater confidence that WorldCom is not about to go into cardiac arrest," Powell said. "We continue to stand guard."

Given the gloomy financial outlook for telecommunications companies Powell suggested the FCC may seek to gain more authority to protect consumers from breaks in service.

He said the commission had no evidence that other telecommunications companies may have pumped up earnings statements in the face of financial pressure. Powell although he would not rule out the possibility.

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