Bernard Ebbers

High School basketball coach. Hotel owner. Car salesman. Milkman. Bouncer. Are the aforementioned positions ones that you would likely associate with a man ranked Time Magazine's eleventh CyberElite for 19981, with an estimated net worth of $1.4 billion US? How about Forbes 174th richest American? If they weren't before, they should be now. These are just a few of the titles that president and CEO of MCIWorldcom Bernard (Bernie) Ebbers has assumed over the years.

Born in Edmonton in 1941, Ebbers attended Victoria Composite High School downtown. He was driving a milk-delivery truck by day, employed as a bouncer by night1. Ebbers hardly seemed destined for a leading role in the world of high finance telecommunications. At that point, Mississippi College approached, offering the 6-foot-4 Ebbers a basketball scholarship. It was a small liberal-arts Baptist school. He accepted, and began his college basketball career.

Ebbers graduated with a degree in physical education and a reputation of being a fierce contender on, and off, the court.

He did not severe his basketball ties here, however. Ebbers held a job coaching a high school basketball team. At one point, he owned a small garment factory. Soon, by coercing friend and relatives to invest, he purchased a motel and restaurant in Colonel, Mississippi. Gradually, by using his investment in another motel as collateral, he increased his assets to nine inns.

Next, seeing the opportunities present in the telecommunications industry, Ebbers sat down with three of his pals, discussing how they could benefit by the recent break-up of AT&T. They developed a plan to buy up long distance time and sell to local companies on a smaller scale, in a process somewhat akin to commodities trading. They named the business Long Distance Discount Service. LDDS was a success on account of being unhindered by the costs of installing and maintaining telephone lines. They also benefited from the prospect of fibre-optic lines over the old copper lines.

As Long Distance Discount Service, renamed WorldCom in 1995,obtained other companies and grew, it spread out around the globe. By the mid-late nineties, WorldCom had established a place for itself in America's telecommunications market.2

In 1998, WorldCom beat out British Telecom in their $37 million US bid to take over MCI. In addition to the initial $37 M, WorldCom provided a $170 million retention incentive fund for senior MCI executives.3

For their involvement in this, then the biggest merger in telecommunications history, Ebbers received a bonus of $17million US on top of his regular $935 000 US salary2; Both John Sidgmore, WorldCom's vice-chairman, and Scott Sullivan, WorldCom's Chief Financial Officer, earned their $500 000 salaries, as well as 1 million stocks each, at $26 per share.

Earlier this month, MCI WorldCom announced their bid to buy out Sprint Corp. at $76 dollars per share. This would unite America's second and third largest long-distance companies. If the deal goes through, MCI WorldCom's plan will be to offer consumers local and long distance, mobile phone, paging, and Internet services all for one flat monthly fee. They would do this under the title WorldCom.

The bid is under scrutiny by the United States Department of Justice on the grounds of possible breach of the antitrust laws. Consumer groups and rival corporations wonder how, and even if, the merger will benefit the customer as MCI WorldCom guarantees.

Ebbers, a father of two, currently resides comfortably with his second wife in Brookhaven, Mississippi. His home is located by a secluded lake nearly an hour's drive from WorldCom headquarters. He is also owner of a $67 million ranch here in Canada, measuring 164 000 acres.

Bernard Ebbers is a modern-day technological entrepreneur who rose from humble beginnings working odd jobs to pay the rent. He's known now as the Bill Gates of telecommunications. He has taken risks, made bold investments and career moves, and finally come out on top. Yet he has not forgotten his early days. He preaches frugality to his executives, encouraging them to fly coach and order cabs, not hire limos.2 No matter how the merger bid with Sprint turns out, Ebbers and his MCI WorldCom have left a lasting impression on the telecommunications industry, helping to move it forward into the new millenium.

Sources

http://lubbockonline.com/news/100397/LFO274.html

http://www.pathfinder.com/time/digital/cyberelite/11.html

Scott Canon. "Small-town lifestyle suits big-time telecom tycoon". Edmonton Journal (October 6, 1999): H1, 4