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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554

In the Matter of                   )    
                              )
MCI Communications Corporation          )    File No.     ISP-93-013       
British Telecommunications plc          )
                              )
Joint Petition for Declaratory Ruling   )
Concerning Section 310(b)(4) and (d) of      )
the Communications Act of 1934,         )
as amended                         )
                              )
MCI WorldCom, Inc.            )    File No.     ISP-PDR-19981021-00009
Petition for Declaratory Ruling         )

                              ORDER

   Adopted:  February 4, 1999           Released:  February 17, 1999

By the Chief, Telecommunications Division:

     1.   On October 21, 1998, MCI WorldCom, Inc. (MCI WorldCom) filed a petition for
declaratory ruling with respect to the reporting requirements imposed on MCI Communications
Corporation (MCI) because of a 20 percent investment by British Telecommunications, plc (BT)
in MCI.  MCI WorldCom argues that because of the merger of MCI and WorldCom, Inc.
(WorldCom) and BT's subsequent redemption of its entire shareholding in MCI for cash, the
reporting requirements imposed on MCI are no longer relevant, necessary, or in the public
interest.  We placed MCI WorldCom's petition on public notice on November 4, 1998.  We
received no comments.

     2.   In 1994, the Commission found that BT's 20 percent ownership interest, which
when aggregated with existing non-BT foreign investment totaled 28 percent, was consistent with
and permissible under Section 310(b)(4) of the Communications Act, as amended.  The
Commission, however, also found that the transaction was "unique in light of the parties involved"
and that therefore certain safeguards were needed to ensure that the parties did not engage in
anticompetitive activities.  These safeguards included reporting requirements that  required MCI
to: (1) maintain complete records on provisioning and maintenance of network facilities and
services it procures from BT and make those records available to the Commission upon request;
(2) file monthly circuit status reports on the U.S.-U.K. route; (3) notify the Commission of
additional circuits on the U.S.-U.K. route; (4) file quarterly reports of revenue, number of
messages and number of minutes of both originating and terminating traffic on the U.S.-U.K.
route; and (5) file copies of contracts, agreements, and arrangements with BT that relate to the
routing of traffic and settlement of accounts on the U.S.-U.K. route.  The Commission also
imposed a requirement that MCI obtain a written commitment from BT not to offer or provide
any special concessions to NEWCO, subsequently renamed Concert, relating to the provision of
basic services.

     3.   Since the Commission imposed the reporting requirements on MCI, there has been
a substantial change in the relationship between MCI and BT.  In 1996, BT and MCI entered into
a Merger Agreement and Plan of Merger in which BT agreed to acquire the remaining 80 percent
of MCI.  On November 9, 1997, however, MCI and BT terminated their merger agreement, and
BT agreed to acquire MCI's 24.9 percent interest in the Concert joint venture. 
Contemporaneously, MCI entered into a new merger agreement with WorldCom, and WorldCom
agreed to acquire BT's 20 percent  interest in MCI.  On September 15, 1998 the transaction
between MCI and WorldCom was executed.  Thus, the "unique nature and details" of the alliance
between MCI and BT no longer exist because BT has no equity interest in MCI or MCI
WorldCom.  In addition, neither MCI WorldCom nor MCI has any equity interest in the Concert
joint venture.  We, therefore, find that the reporting requirements imposed on MCI because of
BT's investment are no longer in the public interest and remove them.

     4.   Accordingly, IT IS ORDERED that MCI WorldCom's request, File No. ISP-PDR-
19981021-00009, IS GRANTED.

     5.   IT IS FURTHER ORDERED that all reporting requirements imposed on MCI as a
result of BT's 20 percent investment in MCI, as specified in BT/MCI I at  64-71, do not apply
to MCI WorldCom.  

     6.   This Order is issued under Section 0.261 of the Commission's rules, 47 C.F.R. 
0.261, and is effective upon release.  Petitions for reconsideration under Section 1.106 or
applications for review under Section 1.115 of the Commission's rules, 47 C.F.R.  1.106, 1.115,
may be filed within 30 days of the date of public notice of this order (see 47 C.F.R.  1.4(b)(2)).

                              FEDERAL COMMUNICATIONS COMMISSION 




                              Rebecca Arbogast
                              Chief, Telecommunications Division
                              International Bureau