WorldCom Inc., the bankrupt U.S. long-distance telephone company, on Monday said it had reached agreements to transfer nearly 2 million wireless phone customers to other service providers as it prepares to close its money-losing wireless unit by the end of September.
WorldCom said it will transfer its customers to AT&T Wireless Services Inc. (AWE,Trade), Verizon Wireless, Alltel Corp. (AT,Trade) and a fourth carrier that it declined to be named. Cingular Wireless was not part of the agreement, WorldCom said. WorldCom said while it received a negligible amount of money for its customers, the closing of the unprofitable unit will save $700 million a year. It forged the agreements before filing for bankruptcy, so the pacts are not subject to scrutiny by the bankruptcy court.