CLEC Enterprise Customers Must Proactively Ensure They Are Protected as Industry Transitions to Internet Protocol
Sep 29, 2015 9:30:00 AM
This is a crucial time for the thousands of businesses that purchase telecommunications from Competitive Local Exchange Carriers (CLECs). For several years Incumbent Local Exchange Carriers (ILECs) have been modernizing their networks, retiring and replacing copper with fiber and transitioning to networks that use Internet protocol (IP).
Often, this technology change significantly impacts the services ILECs provide over their networks, including the wholesale services CLECs purchase to provide their own services to business customers. While CLECs may have the opportunity to purchase a replacement ILEC IP service such as Ethernet to resell, there have never been rules in place to ensure that any replacement wholesale service will offer rates, terms and conditions that will enable a CLEC to continue to offer the same service and maintain the same relationship with its business customers.
Jun 30, 2015 9:30:00 AM
For years the vast majority of ILEC regulated revenues have come from selling special access services to other LECs and enterprise customers. For those unfamiliar with this term, ILEC special access consists of a family of circuits that provide dedicated connections between two or more customer designated premises at various capacity levels. These circuits are usually used by business customers to transmit data between locations. Special access is often economical for businesses because dedicated circuits are charged a flat monthly rate rather than on a minute of use basis. Therefore, the more traffic a business can pump over a circuit each month, the lower its equivalent minute of use charge would be.
Apr 6, 2015 11:15:00 AM
The following is a guest post by David Rohde of TechCaliber Consulting, LLC.
It’s an axiom of enterprise telecom RFPs that you probably want to award some business to competitive providers to keep the big incumbents on their toes. And in the old days, throwing some intercity private lines or some outbound long distance minutes to Carrier X was a nice, tactical way to achieve this purpose without much operational risk.
But we do not live in tactical times. A massive strategic shift is well under way in the enterprise market. Business customers are procuring products and services that have to be stable in the new, all-IP network environment as the TDM-based Public Switched Telephone Network is about to be ripped out of the ground.