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July 30, 2002 — (WEB HOST INDUSTRY REVIEW) — Though WorldCom has the company?s service will not be disrupted by its efforts at financial restructuring, reports following last week?s bankruptcy filing have said that customers are reviewing their contracts and seeking out alternatives.
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Customers are being advised to monitor their service levels before finalizing their decisions, distributing traffic as they can among other providers. Analysts have recommended that customers negotiating new contracts should consider shorter commitments that will allow them an out should service levels decline.
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Though short-term contracts can be more costly than longer-term arrangements, special deals like WorldCom?s Customer Satisfaction and Loyalty Program provide renewal incentives and a low-risk six-month extension.
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Customers rely on WorldCom for a variety of services, including data networks services, voice services and hosting services through Digex, which relies on WorldCom for funding. Despite the fact that WorldCom has said it is committed to continued funding, managed hosting customers have expressed concerns about the future of their service.
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With over $100 billion in assets, few expect WorldCom?s network will be shut down. Customers? biggest concerns are that network performance and customer service will suffer as the company focuses on reorganization. The company has already announced it would lay off 17,000 employees in an effort to balance the books.
