Feeds

Worldcom screws down EDS bill

But to start paying again

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

EDS has cut its annual outsourcing charges to Worldcom by a whopping $83m a year. In return the bankrupt telco will resume payments to EDS, worth an estimated $600m a year over three years.

Under the previous contract, Worldcom was obliged to buy in a minimum amount of services from EDS. It still had to pay up if it did not use those services. According to Reuters, the cumulative minimum payment owing to EDS was "$5 billion, of which WorldCom has paid about $1.8 billion".

Worldcom had to get approval from the bankruptcy court for the deal, which will see it hand over an initial payment of $98.6m. EDS meanwhile sees a major weight lifted off its shoulders, even if all the fat has been cut from the contract. ®

Related stories

EDS rejects WorldCom accounting allegations
EDS-Worldcom deal highlights outsourcing risks

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.