The turmoil continues in telecommunications, making the long-awaited turnaround increasingly difficult to call. Indeed, in light of a wave of bad news last week and through the weekend, some analysts say the industry's problems could actually become worse before they become better.

Joe Nacchio leaves Qwest; XO files for bankruptcy; Lucent's sales decline 15% in a single quarter; Sprint's debt is nearly junk.

Analyst: "I foresee a near total collapse as the endgame."

Another: "The magnitude of the problem is enormous." 24 of 29 top US telecom companies that have not yet filed for bankruptcy are at risk of doing so in coming months.