Spotlight: PacBell, MCI Are Formally Given State Telecom Pact

The state formally awarded a 10-year, $929-million telecommunications contract to Pacific Bell and MCI Communications Inc., setting up the planned transfer of the its vast phone, data and video communications systems to private companies. The state’s Department of General Services announced late last month that the PacBell-MCI team had won the contract, but a lawsuit is pending and rival bidders have threatened to challenge the selection.