MCI WORLDCOM AND SPRINT FILE FOR FCC APPROVAL OF MERGER

News Bureau Media Relations 800-644-NEWS Investors Scott Hamilton 601-460-4981

Washington, D.C., November 17, 1999 - The merger of MCI WorldCom and Sprint will create a strengthened competitor that can crack open local markets and bring voice and broadband services to residences and businesses, the companies told the FCC today in a joint application for approval of the merger.

"Our filing today demonstrates that this merger is in the public interest, will not reduce competition and will provide substantial consumer benefits," said Michael H. Salsbury, general counsel of MCI WorldCom.

"The telecommunications market is changing in a radical way as old notions of 'long distance' and 'local' fall by the wayside," said Richard Devlin, general counsel of Sprint. "We are meeting competitors in the world of 'all distance' service. That means consumer choice for all services, at all distances, all of the time."

The companies announced their agreement to merge last month. The application to the FCC is a key step toward completion of the merger, which the companies expect in the second half of next year.

The application includes a "brief" and several affidavits by company officers and outside experts. It lays out the companies' belief that the merger will be in the public interest because it creates a strong third force to compete with AT&T and mega-Bells.

"By combining the companies' local assets and technical and entrepreneurial skills, the new WorldCom will be far better positioned to crack open the BOCs' lock on access to customers in order to compete in all markets nationwide, most especially the market for 'all distance' service," says the application.

The application addresses squarely the issue of concentration in the traditional but rapidly evolving "long distance" market. Today's "long distance" market is characterized by vigorous competition among more than 600 providers, 20 of which have revenues of more than $100 million and eight of which have annual revenues exceeding $1 billion, said the companies.

Competition in "long distance" is further assured, said the companies, because of the massive deployment of long distance capacity in the hands of emerging carriers. The application notes that in the last three years, more than 62 million miles of new fiber optic cable has been laid, 71 percent of which was added by emerging carriers.

For example, Qwest has reported that the currently lit portion of its network has sufficient capacity to handle the current combined traffic of AT&T, MCI WorldCom and Sprint, said the application affidavit of economists Stanley Besen and Steven Brenner.

Competition in "long distance" and "any distance" will increase dramatically as the Bell operating companies enter the long distance market in their regions, says the application. Bell Atlantic has predicted it will take 26 percent share of the long distance market in New York, where its 271 application is in final stages, the application says.

"No evaluation of the state of competition of long distance services at the time this merger will close can be accurate unless it accounts for this fundamental change," says the application.

Other points made in the application:

Broadband and Wireless

The merger will create a company that can effectively compete in advanced broadband and wireless services.

"The only question is whether tomorrow's broadband to residential users will be supplied competitively, or will be controlled by the traditional telephone and cable incumbents," said the application. With AT&T blocking access to its monopoly cable plant and the Bells trying to limit competitive access to "digital subscriber loop" facilities, the merged MCI WorldCom-Sprint will offer a third choice for broadband, the companies said.

One way the merged MCI WorldCom and Sprint will be able to more effectively deploy advanced services is by combining their complementary MMDS wireless assets in order to provide a national broadband service, the companies said. When those assets are combined with DSL and MCI WorldCom's fiber rings in 102 cities, the joint assets will create an independent broadband network reaching residences and businesses across the country.

Combining Sprint's PCS business with MCI WorldCom's SkyTel paging operations will make the new WorldCom a stronger provider of "all distance" services, the companies said.

A Stronger International Competitor

The combined company's overseas operations will promote an important U.S. presence in the global marketplace while strengthening its domestic assets and operations, said the companies. "The proposed merger will promote competition in the U.S. and around the world by strengthening the new company's ability to leverage its international telecommunications assets to more readily expand and enhance its service offerings on a global basis," they said.

About MCI WorldCom

MCI WorldCom (NASDAQ: WCOM) is a global leader in communications services with 1998 revenues of more than $30 billion and operations in more than 65 countries. MCI WorldCom's global networks provide high-capacity connectivity to more than 45,000 buildings worldwide. MCI WorldCom and Sprint have announced an agreement to merge, which the companies expect to close in the second half of 2000, following regulatory and shareholder approvals. The new company will be called WorldCom. For more information go to http://www.wcom.com.

About Sprint

Sprint is a global communications company - at the forefront of integrating long distance, local and wireless communications services. Sprint built and operates the United States' first nationwide all-digital, fiber-optic network and is a leader in advanced data communications services. Sprint has $17 billion in annual revenues and serves more than 20 million business and residential customers. Sprint is traded on the NYSE under FON and PCS. For the latest updates on Sprint, check http://www.sprint.com.

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