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Only the FCC Can Stop CLEC Momentum
Wednesday October 01, 2008,
06:19 pm ET
DRAPER, Utah, Oct. 01 /Patrick Oborn/ --
The way business connect to the digital universe is changing. More and more enterprises are
discovering the new broadband options made available to them through a series of cost cutting
measures by telecommunication providers. With the recent rush to consolidate, more and more
features are being crammed into the current service offerings, which continue to fall in price
bringing products like integrated T1 service into the price range of the vast majority of
small to medium-size businesses.
Ultimately it all comes down to basic economics. Whenever a technology can offer
more features for less money that what businesses are currently paying, it's just
a matter of time before the flood gates open up with companies wanting to adapt
the new standard. According to the Telecommunications Research Institute, headquartered
in Miami, Florida, the mass migration to dynamic integrated service offerings
is only being held back by a lack of education and/or the ability of carriers to
reach their target market. "Most people are leery of advertising and solicitations
by phone company salesman." comment Bill Bradley, analyst.
"Like Forrest Gump said, finding the right phone service for your business is
like a box of chocolates - you never know what you're going to get" joked
Elizabeth Forest of Detroit, Michigan. "Before finding Cavalier Telephone
through my Telarus agent, I was mislead into signing up for services that weren't
a good fit for my business. Add to that the billing inaccuracies and the hassle
it was to get everything straightened out. My new integrated T1 works flawlessly,
I am able to get full T1 data speeds when no one is on the phone, and I don't
fear opening the bill when it arrives in the mail each month."
"I am very satisfied with my new XO dynamic T1" added Mike McLoude, a small business
owner in Santa Monica, California. "The flexible nature of the system allows me to
conduct business with the same efficiency as many of my bigger competitors, for less
than what they pay." Mr. McLoude is not alone - many Californians are seeing the
technology light and taking the leap of faith away from traditional TDM.
With the help of super-CLECs like XO Communications, PAETEC, Nuvox, One Communications,
Cavalier Telephone, and TelePacific, small business owners everywhere now have access
to non-Bell service that is on par or better than those being offered by the former
Bells. Integrated T1s that do more and cost less have transformed into a solid beach
head for the newcomers.
As the competitive local exchange carriers continue to compete by introducing new and
exciting products at prices most small businesses can afford, they are coming up against
increasing resistance from the RBOCs who are forces to lease their own copper lines
to these CLECs at reduced rates. This reality has the CLECs rushing to deploy their
own networks and fiber routes, but the FCC may ultimately relax the mandate - leaving
all of us wondering how long the party is going to last.
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