COMPANY TOWN

Music: MCI Communications Corp. is planning an ambitious entry into the music business. Next month, the Washington-based telecommunications giant will create a multimillion-dollar music retailing division from which consumers can order compact discs and cassettes by phone, sources said. The new computerized touch-tone phone system will enable customers to sample music selections before ordering by credit card. MCI’s album prices are expected to be competitive with national music chains, but sources say customers may be charged extra for shipping. MCI has spent more than a year studying the industry, compiling stock, digitizing sampled music selections and testing its phone system. Excluding record clubs, whose sales are fueled by giveaways and promotions, most ventures into the mail-order arena have met with little success. Indeed, news of MCI’s move comes just weeks after Warner Music Group took an $85-million write-off to close its mail-order business.