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MCI WINS $1 BILLION TELECOMMUNICATIONS PACT FROM IVANS, THE INSURANCE INDUSTRY'S ELECTRONIC COMMUNICATIONS NETWORK

 RYE BROOK, N.Y., June 14 /PRNewswire/ -- In announcing its largest win ever, MCI said today that it has been selected by Insurance Value Added Network Services (IVANS), the insurance industry's electronic communications network, to provide its members a wide range of telecommunications services. MCI estimated that its agreement in principle with IVANS is valued at more than $1 billion dollars over five years.
 "The IVANS relationship is not only MCI's largest agreement ever,but also closely follows a number of major new wins for MCI in the financial services industry," said Jonathan Crane, president of MCI National Accounts. "With this announcement, MCI will greatly increase its penetration of the insurance industry -- an industry that relies increasingly on telecommunications to transact business, both domestically and internationally."
 MCI will provide a wide range of domestic and international voice, data, imaging and video conferencing services to many of the more than 400 members of IVANS, which include property, casualty, life and health insurance companies and their business partners, according to the terms of the letter of intent. MCI's volume of business with IVANS had previously grown to a level of nearly $100 million annually since 1987.
 "Our members feel that MCI's telecommunications products offer high value," said Robert Y. Barham, president and chief executive officer of IVANS. "That, coupled with MCI's willingness to focus on the development of new services to meet the special needs of the insurance industry, made MCI a clear choice," Barham added.
 Pact To Address Industry Needs
 Crane said MCI and IVANS expect to offer new telecommunications services to address such insurance industry needs as improved catastrophe-relief operations and a service that would simplify dialing and administration for IVANS members.
 "These industry-specific services would make claims adjusters, engineers, premium auditors, agents and brokers -- and countless others in the industry -- more productive," Barham explained.
 Barham said that MCI agreed to work with IVANS in developing and implementing a catastrophe-relief operations telecommunications support plan for IVANS. The plan will be designed to smooth communications for insurance company claims teams at catastrophe sites. He said it would include items such as shared communications equipment and procedures for activating services.
 MCI's previous largest contract announcement was the 10-year, nearly $1 billion agreement with the Federal Aviation Administration (FAA) for its LINCS network announced in 1992. Also, earlier this year, MCI announced its largest commercial contract with Bank of America, a multi- year agreement valued at more than $250 million.
 IVANS was established in 1983 as a not-for-profit organization to combine voice and data communications usage volume of its members for added-value purchasing. IVANS today is a broadly-based electronic communications provider delivering a wide range of services to a growing group of about 400 companies. It has nearly 50,000 data network users and serves more than 18,500 property and casualty agency interfaces, representing more than 90 percent of all U.S. property and casualty insurance volume. IVANS' members account for $900 million, or 60 percent, of the industry's annual $1.5 billion in telecommunications expenditures.
 Headquartered in Washington, D.C., MCI offers a full range of domestic and global telecommunications services through one of the world's largest state-of-the-art networks. With 1992 revenue of $10.6 billion, the company is the second-largest long distance provider in the United States and has more than 60 overseas offices in 55 countries.
 Background:
 MCI MOMENTUM -- "The Last 60 Days"
 MCI's new insurance industry win with Insurance Value Added Network Services (IVANS), worth more than $1 billion over five years, comes less than two weeks after MCI's "telecommunications deal of the century" with British Telecom (BT). On June 2, MCI and BT announced that they will form a worldwide strategic alliance to provide advanced global communications to multinational companies throughout the world. BT will also take a 20 percent stake in MCI for approximately $4.3 billion. These two agreements, coupled with other MCI announcements made in the last two months, have produced unprecedented momentum for MCI as it marks its 25 anniversary this year.
 Below are some of the MCI news-making highlights during the last sixty days:
 April 12 -- MCI Announces First Fresh Look Win
 Ceridian agrees to exercise its Fresh Look right by awarding MCI a new, three-year $15 million contract. MCI replaced AT&T as Ceridian's primary carrier. Fresh Look is the term given to the FCC order that allows AT&T customers under AT&T Tariff 12, Tariff 16 or SDN-NRA Express agreements to discontinue these agreements without financial penalty from May 1 until July 30, 1993.
 April 29 -- MCI Announces Strong First Quarter Results
 MCI's first quarter revenue jumped 11.8 percent and operating income increased 20 percent over first quarter 1992 results.
 April 26 -- Bank of America Win Sets MCI Record
 MCI signs Bank of America to a multi-year agreement valued at more than $250 million. MCI replaces AT&T as the bank's primary carrier. The win becomes MCI's largest commercial agreement ever announced. MCI becomes the primary carrier to the nation's two largest banks, Citicorp and Bank of America.
 April 28 -- MCI Declares "800 Independence Day"
 At a press conference in Washington D.C., MCI announces that more than 6,500 companies have agreed to switch 800 traffic to MCI with the start of 800 portability on May 1. The new 800 business is valued at more than $170 million. The vast majority of MCI's new 800 wins came at AT&T's expense.
 May 4 -- MCI Beats Out AT&T to Win J.P. Morgan Global Outsourcing
 Agreement
 Beating out rival AT&T, MCI was awarded a five-year $80 million global networking outsourcing agreement from J.P. Morgan, the nation's fifth largest bank. The agreement is believed to be the largest global network outsourcing agreement announced to-date.
 May 6 -- U.S. Congress Selects MCI
 The U.S. Congress awards MCI a $30 million, five-year agreement to provide an array of advanced voice and data services.
 May 19 -- MCI Announces "1-800-COLLECT"
 Expected to change the way millions of Americans make collect calls, MCI announced its new "1-800-COLLECT" service, America's least expensive way to call collect. Targeted at the $3 billion collect calling market, consumers can save up to 44 percent over AT&T's collect calling rates by using this new service.
 May 26 -- MCI Announces a 2-For-1 Stock Split
 At MCI's annual meeting in Washington D.C., MCI announced a 2-For-1 stock split in the form of a 100 percent stock dividend payable July 9. The annual meeting marked MCI's 25 anniversary celebration under the theme, "25 Years Going Forward."
 May 27 -- "Proof Positive" Documents MCI Savings Over AT&T Business
 Rates
 MCI's Proof Positive service for small and mid-size businesses provides written documentation to customers every 90 days that they are saving money, they are on MCI's best calling plan, and that MCI is doing what is right for the customer. Each statement is customized to the calling patterns of the individual business customer and is reviewed by a Big Six accounting firm. The new business service is expected to revolutionize business telecommunications to the same extent MCI's popular Friends and Family services has led to more than 10 million new MCI residential customers.
 -0- 6/14/93
 /CONTACT: Yvonne Gagnon of MCI National Accounts, 914-933-6035, or Peter van Aartrijk, Jr. of IVANS, 203-532-2139; Background information: Frank J. Walter of MCI National Accounts, 212-326-4389 or MCI Corporate News Bureau, 800-289-0073/
 (MCI)


CO: MCI Communications ST: New York IN: TLS SU:

SM -- NY018 -- 1492 06/14/93 10:01 EST
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