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Momentum Builds for CLECs
Thursday June 26, 2008,
08:46 am ET
SOUTH FORK, Missouri, Jun. 26 /Olamide Lieberman/ --
Is there a resurgence in the popularity of telecommunications providers that compares with
the late 1990's? The answer may surprise you. Since the crash of the Internet bubble,
struggling telecoms have seen Darwin in action as many companies were forced with the
choice of bankruptcy or forced consolidation. However, some companies chose the road less
traveled: innovation. By offering customers more for less, many small to medium size
business customers are finding that they can upgrade to integrated T1 service for the
same cost of five regular phone lines.
The early adapters of this new technology have realized a cost savings that helps
them be more competitive in the market space. By saving hundreds of dollars each
month, which equates to thousands of dollars per year, small businesses are able
to do more while spending less on their telecom bill. This savings allows for
hiring of additional staff, upgrading equipment, and other activities that make
the enterprise more productive and profitable. Many in the industry see the
lack of mass adoption of this new technology as just shear ignorance and/or
a lack of trust for telecom sales people.
The adoption of any new telecommunications platform is never instantaneous. Many
technologies, like VoIP for example, have been in the works for years without
gaining much traction. Enterprises see communications as their life blood. Even
though many are becoming aware of newer, cheaper mediums by which they can conduct
business, the risk still outweighs the rewards in their minds. Couple the
'if it isn't broken, why fix it?' mind set with the telecom meltdown of the early
2000's and it isn't surprising that widespread adoption of new telecom services
has lagged. However, the new technologies of IP-based voice systems are finally
starting to gain an audience, and the chorus of satisfied customers continues to
grow. As this momentum pushes forward, so does general acceptance of it viability.
"When we moved into our new location here in Los Angeles" commented John Baker, a
small business owner in San Diego, California, "we feared having to sign up for
commercial telephone and internet service. Until about a year ago, the services
being offered to us were TDM, which doesn't come cheap. Thankfully our Telarus
commercial telecom broker recommended that we give TelePacific a try, and we did.
One year later, we've never had an erroneous bill, our phone and data are all on
one single dynamic T1, and we can focus on what we do best - brokering mortgages."
The only thing that can get in the way of future progress is the law. You know, the one
that requires the RBOCs to lease their local loops to CLECs at a reduced rate so that
the customer can get a dedicated connection between their office and the CLECs' network.
If the FCC decided to lift this requirement, this whole deck of cards could come down
in a hurry, and when it does, you can kiss dynamic integrated T1 service for under $500
good bye!
Evolution has lead to a better, cheaper alternative to TDM services that the Bells were
peddling for decades in a vacuum of competition. Now the industry, lead by the innovation
and great business practices of the CLECs, seems to have turned a corner - leaving the
incumbents playing catchup. Obviously, the main benefactor of all of this competition
is the small to medium size business - a segment of the market that was taken for granted
until today.
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