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By Reinhardt Krause
Investor's Business Daily
For a growing number of start-up phone companies, it's too late to call the doctor. It's time to dial up the morgue.
But who'll pick up the bodies isn't clear.
PSINet Inc. on Tuesday said it likely will seek federal bankruptcy protection. Other start-up carriers are in the same boat, or soon could be.
The collapse of the start-ups could benefit some stronger companies. But it's not clear which companies might buy the networks owned by struggling start-ups, or grab their customers.
"We're in a vulture's market," said Berge Ayvazian, an analyst with market researcher The Yankee Group. "There aren't too many buyers out there. The ones that are (there) want to minimize the cost of acquiring assets."