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Small phone market poised for growth

The competitive local phone market was ravaged by consolidation and failures in the past year, but the remaining providers are poised for growth, according to a new study by The Strategis Group, a communications industry consulting firm. Survivors of the sector's shakeout, such as XO Communications, Time Warner Telecom and Allegiance Telecom among others, will emerge as a smaller, yet stronger group of challengers to the Baby Bell local phone giants, the firm said. The Strategis Group estimates that competitive phone industry revenues will increase by 357 percent over the next five years, driven by demand for local phone, long-distance voice and data services. Total industry revenues are expected to grow to $58.8 billion in 2005, up from $12.8 billion in 2000, the study shows.

    The competitive local phone market was ravaged by consolidation and failures in the past year, but the remaining providers are poised for growth, according to a new study by The Strategis Group, a communications industry consulting firm. Survivors of the sector's shakeout, such as XO Communications, Time Warner Telecom and Allegiance Telecom among others, will emerge as a smaller, yet stronger group of challengers to the Baby Bell local phone giants, the firm said. The Strategis Group estimates that competitive phone industry revenues will increase by 357 percent over the next five years, driven by demand for local phone, long-distance voice and data services. Total industry revenues are expected to grow to $58.8 billion in 2005, up from $12.8 billion in 2000, the study shows.