At a time when regional Bells are fighting for big city and business customers, MCI Corp appears to have created a new front in the telecom war by slipping into the rural sector. In an unusual move, MCI said Tuesday it had initiated a partnership with a local phone company and a power company in Iowa that will bring rural customers both local and long distance services, high-speed internet access, cable TV and wireless communications, all at competitive prices. MCI has signed a deal with Northwest Iowa Telephone and Northwest Iowa Power Cooperative to form Pioneer Holdings LLC, which will provide integrated communications services through local distributors’ networks. Rural customers who want to purchase services can sign up with local cable companies, power companies, municipal utilities, independent telephone companies and even municipalities themselves. They can order the products and services they want, which will then be delivered through Pioneer Holdings’ combined networks and services. The new partnership also announced Thursday its first three agreements with local distributors; the City of Hawarden, the City of Manning and the North West Rural Electric Cooperative. According to the new company’s executives, Pioneer Holdings is now engaged in negotiations with nearly 300 municipalities and other entities in 10 states.
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