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The product was a success in Denver. Because of the success of the launch, MCI has the ability to grow quickly in this market. Because MCI has minimal historical data on revenues generated by the Execunet product, forecasting future revenues and growth will be difficult.
Another factor making external financing forecasts difficult is the antitrust suit between AT&T and the Justice Department in January of 1982. This settlement says that by 1986 independent local telephone companies must provide equal quality of access to all competing long distance providers. Originally MCI was paying less to their long distance providers but were limited in many regions...
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