-30 March 2005 -

US telecoms gets duopoly
& 80% market control

Verizon's successful acquisition of MCI represents the latest step in telecom convergence and consolidation. According to Harvey Cohen, President of Strategy Analytics, "It was inevitable that further consolidation would take place. This action will continue the trend of job losses in this industry."

Cohen added however, "If the duopoly of SBC-AT&T and Verizon-MCI actually compete across the US, it may be good for business and consumers in time. But this is definitely not the vision of a highly competitive telecoms environment with which we began this decade.

"A duopoly controlling almost 80% of the business market is only slightly better than a monopoly controlling 100% of the pie."