S&P Says 'Worst Is Over' For Telecom

Communications Today, March 7, 2003

The weak economy, skeptical investors and intense competition will continue to place downward pressure on the telecom industry in 2003, but the "worst is over," according to a study released on Thursday by Standard & Poor's Ratings Services. S&P said subscriber levels for many of the telecom and cable sectors have either grown at a slowed pace over the past year or have declined, but that there are fewer overall companies competing for business due to bankruptcies and retrenchment.

The credit rating firm expects the Regional Bell Operating Companies to keep expanding their long distance and DSL businesses to counter residential line losses resulting from UNE-P pricing. It also said that, though the longdistance industry has recently seen some signs of price stability, the service will remain a commodity.

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