GE Division to Leverage WorldCom Backbone

In what’s being billed by the companies as an effort to advance the adoption of global electronic commerce, GE Information Services and WorldCom today announced a networking agreement under which GE Information Services’ traffic will be shifted to WorldCom’s backbone.

GE Information Services said it will begin switching network traffic to WorldCom beginning July 1, with WorldCom assuming operating control and co-management responsibilities for the GE division’s global traffic.

Financial terms of the deal were not disclosed.

GE Information Services said the move is aimed at enabling the company to concentrate on the development and support of its electronic commerce technologies.

The company added that the network integration will increase its points of presence three-fold worldwide, and enable it to deliver enhanced data, voice, video, and Internet solutions.

The deal will give GE Information Services new dial-up access points in 658 cities around the globe, and 104 worldwide frame relay sites that it said will allow it to better serve customers’ virtual trading communities.

The agreement also calls for the transfer of GE Information Services network operations employees to WorldCom. The companies said no lay-offs are planned.

“This deal provides GE Information Services with substantial opportunity to help our customers establish, grow, and manage their global electronic trading communities,” said Harvey F. Seegers, president and CEO of GE Information Services, in a statement.

“WorldCom shares our vision and enthusiasm for the future of electronic commerce and, together, we can deliver powerful solutions that meet the demanding needs of increasingly internetworked global enterprises.”

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