MCI Unveils Unlimited Calling Plan

CLINTON, Miss. —  WorldCom Inc. is delving deeper into the local phone market with a new initiative that offers unlimited local and long-distance calls for a flat monthly fee of about $55.

The Neighborhood, announced Monday and offered by WorldCom’s consumer MCI Group, will place the company in direct competition with local Bell companies such as Verizon Communications Inc. and SBC Communications Inc.

The plan is available immediately in 32 states and provides “all-you-can-eat” local and long-distance calling in the United States--a new offering in the industry, said analyst Pat Comack of Guzman & Co. in Miami.

But at costs between $49.99 and $59.99 a month, Comack questions how competitive the Neighborhood will be. He said consumers typically spend $55 a month for traditional local and long-distance service already.

WorldCom said it expects to offer the service nationwide by early next year.

Long-distance price competition has battered the MCI side of WorldCom’s business and prompted the company to create an MCI tracking stock last year.

WorldCom Group shares rose 6 cents to $5.07, while MCI Group rose 3 cents to $4.75, both on Nasdaq.