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Carrier briefs

Network World
December 13, 2002 01:22 PM ET
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Despite bankruptcies and a slow economy, competitive telecom providers continue to increase their market presence, according to the latest Federal Communications Commission statistics (see report - 911k in PDF). Competitive local exchange carrier access lines grew 10% in the first half of 2002, from 19.7 million to 21.6 million.

As of June 30, CLECs provided about 11.4% of the 189 million total switched access lines in the U.S. Slightly more than half of the CLEC lines serve residential and small business customers, compared with more than 75% of the incumbent local exchange carrier lines.

According to the report, CLECs rely heavily on unbundled network elements to provide services to end users. Only 21% of the CLEC lines were resold from other carriers, while 50% of the lines relied on the purchase of UNEs from the incumbent carriers. The remaining 29% of the lines were carried over the CLECs' own facilities.

Broadwing Communications is getting a cash infusion of $200 million from Goldman Sachs that the carrier will use to reduce its debt load. Broadwing announced the loan last week. The service provider is carrying $1.6 billion in debt, according to its third-quarter financials statement filed with the Securities and Exchange Commission in November. At that time, Broadwing also announced it was reducing its staff by 25% and exiting the international voice-services business. These cost-cutting measures and others are expected to save Broadwing $200 million annually, according to the carrier.

Broadband service provider DSL.net signed an agreement with New Edge Networks last week that lets DSL.net serve customers through New Edge central offices. DSL.net delivers high-speed access to business customers across the country through its own facilities and its partners' facilities. DSL.net's other partners include Covad Communications and Allegiance Telecom.

Read more about lans & wans in Network World's LANs & WANs section.

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