META Group senior research analyst of global networking, Bjarne Munch, told ZDNet Australia that companies in financial situations such as WorldCom's tend to focus on core businesses, which in this case is Internet services.
-What I would expect on a local and global level, if they are going to sell off assets, is that its likely to be voice that will be the first to go," said Munch. He noted that if further sales of Australian assets were to occur it would likely to be residential ISPs, keeping the corporate data services business.
Trading in WorldCom shares was halted yesterday after they fell to US$0.09 following revelations of a potential US$3.852 billion fraud.
In a statement, META Group said it expects WorldCom to file for Chapter 11 bankruptcy within the next few weeks, and is urging customers of the telco to find other service providers.
A Gartner statement is not so pessimistic, but still encourages WorldCom customers to avoid signing long contracts and to arrange back-up services.
In a Web cast WorldCom CEO John Sidgmore admitted it had been a -very tough week", but expressed optimism in the telco's survival.
He claimed the planned downsizing of 17,000 people would save the company US$900 million per year.
The fate of Asia-Pacific employees remains unknown, with layoffs set to commence Friday US time.
-The issues surrounding layoffs and how they will impact our region have not been accurately determined at this time," a company spokesperson told ZDNet Australia. Information is expected to filter through to the region on Friday night.
WorldCom Australia has been unwilling to provide staff figures in Australia, but Munch believes the figure sits at around 221.
-They are getting rid of almost a third of their staff, and if it is spread evenly that will have an implication for local service levels," he said.
