In the wake of Sprint’s acquisition of Nextel, I’ve been reading that consolidation in the wireless market is the only way to compete. The PR business seems to have known this for years, with some small agencies acquired by big multinationals while others join global PR networks. While this consolidation may work in the wireless marketplace, it’s apparently having detrimental effects in the world of PR.

At least, that’s the word from Alain de Pouzilhac, who heads Havas, the fifth largest communications agency in the world. The Paris-based de Pouzilhac says consolidation of the industry makes some clients nervous, particularly when they think about competitive conflict of interest. According to a report in Australia’s The Age, “Most of the multinational PR networks operating here have been outdone in the past three years by smaller, local, specialist operators.”

“I believe it’s the end of (industry) concentration and, probably, in the next five years you will see exactly the opposite of consolidation,” de Pouzilhac told The Age. “If you look at the top 20 (advertising) agencies in the UK and America, you will find 16 global companies, three independent companies and one local. But if you look at new business (wins) for the 11 months of this year, you will see 14 local or independent companies and six global.”

All of us one-person shops are cheering.