In a 78-page white paper issued last week, New York State's Public Service Commission opined that Verizon Communications' proposed takeover of MCI could produce "significant" consolidation in large- and medium-business markets. The PSC called the potential consolidation "troubling" and emphasized that smaller telecom providers might not be able to provide their services to medium and large customers in the event of a Verizon-MCI combination. Information Week has further details on possible remedies suggested by the PSC that would preserve competition in key market segments.

Verizon, as might be expected, defended its move and called the New York market "robustly competitive."