Capellas said the company is continuing its transition away from traditional long-distance service to residential customers under its MCI brand to an emphasis con providing high-end IP services to big businesses. In the company's enterprise segment, which caters to Fortune 500 companies, revenue declined only 8 percent from the year-ago quarter, compared to the 15 percent drop companywide.
Prices are starting to stabilize in the big-business market, Capellas said, and large companies are starting to adopt some of MCI's cutting-edge technologies, particularly on items pertaining to network security.
``The takeup of new technology is starting to hit the enterprise segment first, as you would suspect,'' Capellas said.
In its mass-market segment, which includes its residential long-distance segment, revenue declined only 1 percent from the previous quarter and 18 percent from the year-ago quarter.
MCI has said it is scaling back its marketing efforts in the residential long-distance market due to industry competition and an expected jump in access costs. So far, though, those access cost increases have not occurred, so the company continues to pursue opportunities as they present themselves.
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