WorldCom Inc. on Wednesday announced it plans to exit the wireless reseller business.
WorldCom doesnt have its own wireless network or network equipment, but the company is the largest wireless reseller in the United States, reselling from the top wireless carriers in each market in the United States to almost 2 million customers.
"After carefully assessing our business and the current market conditions for wireless resale services, we have decided to exit the wireless resale business—a business that is not a core WorldCom asset," said John Sidgmore, WorldCom president and CEO, in a statement.
WorldCom has been reselling wireless services for more than five years. The company had hoped to grow into a full-fledged wireless carrier, but that never happened, largely because federal regulators blocked the companys plans to merge with Sprint Corp. two years ago.
WorldCom is still figuring out its exit strategy, but will start by laying off 2,200 employees, said officials at the Clinton, Miss., company.
Company officials said that several carriers have shown interest in buying the business.