Monday, July 01, 2002

Internet fears over WorldCom scandal




WorldCom's $3.8bn (£2.5bn) accounting scandal could deal serious damage to the workings of the internet, some experts are warning.
About 40% of internet traffic uses WorldCom's network at some point.

Technology consultancy Gartner Group is worried that a collapse at WorldCom - following difficulties at rivals including Carrier1, Global Crossing and KPNQwest - could prove disastrous.

The situation for WorldCom customers is "not dire - yet", Gartner said in a note to clients on Thursday.

But it warned that the massive staff cuts the stricken company is planning will devastate service quality.

"Enterprises should therefore make contingency plans," it advised.

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