Jul, 2002 : WorldCom Bankruptcy Won't Affect Backbone
📅 - According to experts, the weekend bankruptcy filing of communications carrier WorldCom Inc., which carries half the world's Internet traffic, is unlikely to slow Internet performance or cause outages.
Reports from performance measurement organization Matrix NetSystems Inc. say the bankruptcy will have almost no effect on Internet performance.
WorldCom's situation is significantly different from that of European carrier KPNQwest, which began shutting down parts of its Ebone network after declaring bankruptcy in May.
If the Chapter 11 reorganization efforts by WorldCom are unsuccessful, the company's assets would be sold, or the government would likely step in to prevent the network from being impacted.
The government and the telecommunications industry obviously have a substantial interest in the survival of the WorldCom network, as there may not be enough infrastructure in place to accommodate its traffic, should the network shut down.
Despite the likelihood of the continued operation WorldCom's UUNet backbone, customers have been seeking alternative providers of backbone capacity. And without the customers, any restructuring WorldCom might undergo would not be enough if it lacks the customer base.
Reports from performance measurement organization Matrix NetSystems Inc. say the bankruptcy will have almost no effect on Internet performance.
WorldCom's situation is significantly different from that of European carrier KPNQwest, which began shutting down parts of its Ebone network after declaring bankruptcy in May.
If the Chapter 11 reorganization efforts by WorldCom are unsuccessful, the company's assets would be sold, or the government would likely step in to prevent the network from being impacted.
The government and the telecommunications industry obviously have a substantial interest in the survival of the WorldCom network, as there may not be enough infrastructure in place to accommodate its traffic, should the network shut down.
Despite the likelihood of the continued operation WorldCom's UUNet backbone, customers have been seeking alternative providers of backbone capacity. And without the customers, any restructuring WorldCom might undergo would not be enough if it lacks the customer base.
Reads: 1634 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/wor072402.cfm
Want to add a website news or press release ? Just do it, it's free! Use add web hosting news!