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CLECs Gain Ground with SMBsFriday September 05,2008, 10:32 pm ET
FROST, Texas, Sep. 05 /Kiersten Thomas/ -- During the 2000 Internet bubble meltdown, the telecom industry learned the hard way that
wild spending on network infrastructure was not the best approach to attracting new business
and investment. Over the past 7 years the industry, particularly the CLECs (Competitive
Local Exchange Carriers) have been focusing on building products that offer more bang
for the buck in order to compete with the Bells in their own backyards. One product that
has become the flagship offering to small to medium size businesses is the dynamic integrated
T1 line, which combines all the usefulness of 24 regular phone lines into a singe T-1
capable of delivering high-speed broadband on the same connection.
Texas is a place that we found was a hot spot for small business owners
making the move over to dynamic T-1 lines. One business owner that we interviewed
gave glowing reviews of his move to TelePacific's "OnePac" dynamic product.
Keith Gray explained "I used to have a regular integrated T1 with 10 voice
lines and 14 data channels. When no one was using the phone in my office,
we were limited to just 896 KB of bandwidth. After searching on the Internet
for better options, I found that I could reduce my price from $850/month to
$500/month, and at the same time have 14 voice lines and 1.5 mbps of broadband.
I didn't take long for me to pull the trigger and make the change."
Texas, ordinarily not known for its telecom prowace, has been a hotbed
for businesses making the move to dynamic telecom lines. One local business
owner - Linda Peterson - who operates a travel agency, recently told us that
"I never expected the phone company to come out with anything that would
help me lower my costs. On the contrary. Ma Bell has had a history of raising
my rates and making my life difficult. When I heard about the XO Flex package
(offering 10 dynamic voice lines and 1.5 mbps of high speed Internet) at a price
of under $500, I couldn't move over fast enough." Since then Linda reported
a $150/month savings in her telecom expenses.
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.Change does not happen quickly in an industry as so heavily regulated as Telecommunications.
Recent industry consolidation has provided huge alternatives to the incumbents, who
are now under pressure to keep up with new technologies while charging better prices
to retain and attract new customer bases.
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