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Momentum Builds for CLECs
Thursday June 25, 2009,
10:20 pm ET
DAWSON, Texas, Jun. 25 /David Onaindia/ --
For many small to medium size businesses, higher productivity with relation to their broadband
and voice services is just around the corner. Thanks in part to the recent price reduction trend
in the industry, carriers have deemed it necessary to consolidate in order to offer more services
at a lower cost than their rivals. Overlapping networks have been consolidated into leaner, more
feature-rich versions of their previous selves, dramatically lowering the price small businesses
pay for the popular dynamic integrated T-carrier (T-1) lines that combine local voice and
high-speed Internet service into one connection.
Min Lieu owns a small insurance agency in Texas. Five years ago he signed up with
XO Communications for a TDM-based integrated T1 line for $870/month, which did not
include local or long distance calling. Recently, he was offered XO's version of
a dynamic circuit called "XO Flex" for half of the price he was already paying.
"I would have been a fool not to take the deal" stated Mr. Lieu. "I'm able to
add headcount with additional voice lines, without any increase in expense or
degradation in high-speed Internet performance."
"For years I've played tug-o-war with the phone company who provided voice and data
service to my toy manufacturing company" commented Troy Bergfeld of Houston Texas.
"They kept trying to sell me services I didn't need, it took them months to finally
send me a correct bill, and I wasn't able to recapture bandwidth from my T1 line
when nobody was using the phone. Now that has all changed - my Telarus product
specialist recommending I give XO Communications a try. Now I use their FLEX T1
product and I pay less and get exactly what I want. I have even add another T1
seamlessly when the time comes for my business to expand."
"True convergence means that I can finally have just one phone company, without being
at the mercy of Ma Bell" added Steven Lankto of Jersey City. "Having a data pipe that
is intelligent enough to know when it needs to become a voice pipe, without any input
from me, is genius. I'm glad that the technology is here and in the price range
of businesses like mine." Mr. Lankto isn't alone; there is now widespread acceptance
of integrated voice and data service in the New York metro area and across most
larger U.S. cities.
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.
Once a forgotten segment of the business telecommunication landscape, small to medium
size businesses are finally being serviced with products (like the dynamic integrated
T1 line) at prices they can afford. Gone are the days when the Bells can shove TDM
services down the collective throats of SMB's at prices that resemble a mortgage rather
than a telephone service.
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