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Telecom Shakeout Is Nearing An End Bankruptcy Wave Ebbs But there's still no sense of what the telecom field will look like when it's over.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| January 02, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: REINHARDT KRAUSE

The fierce storm that swept many phone companies into bankruptcy in 2001 may be letting up.

But it's not over, say industry executives and analysts. Dark clouds still hover over the remaining upstarts that sell local and long-distance phone services.

"Most of the weak are gone," said Royce Holland, chairman and chief executive of Allegiance Telecom Inc. "The shakeout is getting near its completion."

The big question, though, is what the telecom landscape will look like when the storm clears.

A few years ago, most pundits said there would be plenty of business to go around for both local and long-distance start-ups.

They pointed to the Telecommunications Act of 1996. It gave regulators clout to open up local phone markets to more competition.

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