* Despite problems some CLECs have managed to introduce new services
Six years after passage of the Telecommunications Act of 1996, competitive local exchange carriers have failed to make the significant impact on telecom pricing for business customers that advocates had predicted. In fact since 2000, 47 CLECs have filed for bankruptcy or left the market, leaving about 80 to 100 players in place, according to the Association for Local Telecommunications, a CLEC group.
Our Special Focus author Mike Martin points out that while there are some obvious problems, some CLECs have managed to introduce new services, such as integrated voice/data access to business users. And in some large markets – such as New York City where CLECs AT&T and WorldCom operate their own local facilities CLECs are competing with the regional Bell operating companies.
Another market niche where CLECs such as Allegiance Telecom, US LEC and Choice One Communications, have had considerable success is in selling integrated voice and data services to small and midsize businesses.
Typically, an integrated access service uses customer premise equipment to carry voice and data traffic over a single T-1 line, saving customers money on their overall telecom bills. The reason for the CLECs success here is simple – they created the market.
Further churn in this market could take place in February as The Federal Communications Commission is scheduled to hold its triennial review of unbundled network elements – the pieces of the RBOC networks that CLECs are able to purchase at wholesale rates. If the FCC cancels too many of the unbundled elements available to the CLECs, it could spell more bad news for CLECs.
