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Only the FCC Can Stop CLEC MomentumSaturday July 04,2009, 09:30 am ET
EGGVILLE, Mississippi, Jul. 04 /Brendan Luna/ -- 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.
"Even though we have been witnessing the re-consolidation of AT&T, we will never go
back to the dark ages of telecom where customers were stuck with bad customer service
and high prices" commented Troy Karlson, telecom analyst for e-STAR. "The competitive
local exchange carriers (CLECs), all whom own their own networks and compete directly
with the Bells, have created products such as dynamic T1 service that enables its
customers to connect to the Internet at 1.5 MBPS and have up to 24 regular voice lines,
packed with a feature-rich suite of add-ons, all for under what it costs to have
6 regular phone lines from Qwest/AT&T/Verizon.
The Mississippi area is one place in particular where the analog to digital
revolution is gaining traction. One business owner we interviewed about
his recent decision to become a digital convert, Peter Anderson, explained
that "my biggest hindrance was my ignorance. Had I known that there was
a solution that would allow me to increase the number of voice lines,
get a full T1 (1.5 MB) of high-speed Internet, all for less than I was paying
for my POTS/DSL configuration, I would have made the move a long time ago."
Many others like Mr. Anderson are coming to the same conclusion.
Looking in the crystal ball of the future, it is clear that new an innovated services
being offered by the few super-CLECs remaining will drive innovation higher and prices
lower. New technology is being pressed to the forefront by lower prices that the mainstream
of small businesses everywhere can comfortably afford.But how much longer will we continue to see improved technology, services, and prices?
It's all in the hands of the Federal Communications Commission, as they have the power
to sqwash the CLECs by proxy. No wonder AT&T and Verizon are the two biggest lobbying
powers in Washington. It makes you wonder what kind of services they would be able to
offer had they plowed that money into R&D instead of politics.
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