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CLECs Gain Ground with SMBs
Tuesday October 07, 2008, 09:04 pm ET

POMEROY, Washington, Oct. 07 /David Onaindia/ -- Higher productivity for small to medium sized businesses is just around the corner thanks to commercial grade broadband services that are now being delivered at a fraction of their previous cost. Due to the ever increasing competitive marketplace and a mad dash to consolidate networks, telecoms are offering their premium business services to small businesses for a fraction of what they used to cost just a few years ago. Businesses who use more than four regular phone lines can now upgrade to dynamic integrated T-carrier circuits for the same price.

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."

"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."

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. 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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