What is the E/R ratio that the decision keeps referring to?  It is
something in telecom: "Plaintiffs replied that WorldCom's reported E/R
ratio was significantly lower than two of its largest competitors..."

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Request for Question Clarification by rainbow-ga on 22 May 2005 13:09 PDT

Hi joestrom,

Please let me know if this answers your question:

"WorldCom?s largest operating expense was its line costs - costs
incurred to gain access to other carriers? networks so that WorldCom
could complete customers? calls. WorldCom reported in its SEC filings
its ratio of line cost expense to revenues, which was called the E/R
ratio. The lower the ratio, which is a commonly used metric to measure
the performance of telecommunication carriers, the better the
performance."

http://www.thewisdomnetwork.com/assets/documents/CROWhitePaperTheWisdomNetwork.pdf

More on the E/R ratio can be found on the following pages of the site below:
pages 15, 64, 200, 241

http://news.findlaw.com/hdocs/docs/worldcom/bdspcomm60903rpt.pdf

Best regards,
Rainbow

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Clarification of Question by joestrom-ga on 22 May 2005 14:24 PDT

That's exactly what I need.  Thank you for your quick responsew.

Hi joestrom,

Thank you for your clarification. I'll re-post my answer here for your convenience.


"WorldCom?s largest operating expense was its line costs - costs
incurred to gain access to other carriers? networks so that WorldCom
could complete customers? calls. WorldCom reported in its SEC filings
its ratio of line cost expense to revenues, which was called the E/R
ratio. The lower the ratio, which is a commonly used metric to measure
the performance of telecommunication carriers, the better the
performance."

The Wisdom Network  
http://www.thewisdomnetwork.com/assets/documents/CROWhitePaperTheWisdomNetwork.pdf


More on the E/R ratio can be found on the following pages of the site below:
pages 15, 64, 200, 241

FindLaw
http://news.findlaw.com/hdocs/docs/worldcom/bdspcomm60903rpt.pdf


Search criteria:
"E/R ratio"
"E/R ratio" worldcom
"E/R ratio" "expense to revenue"

I hope this is helpful.

Best regards,
Rainbow