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Why are there only a few CLEC left? XO, windstream,etc..


Was there some kind of apocalypse doomsday situation or did they all just get acquired?

Is there some underline systematic reason that CLEC have a destiny to fail or could they do ok if they were run right?


Thanks.

Last edited by raidsystemtech; 03/13/13 04:59 AM.
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Like so many business today, mergers and takeovers and such are taking place.
The strong remain and the weak go under.

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Originally Posted by hitechcomm
Like so many business today, mergers and takeovers and such are taking place.
The strong remain and the weak go under.

So it was not because ILEC won some court decision that let them charge CLEC whatever they wanted instead of a controlled price?

So is there any reason that a well run Clec could not survive in today's industry?

Thanks.

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Cash flow is key to any business

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The Evil Empire (oops, Verizon) is systematically removing copper as FiOS is rolled out. Once an entire street or 'hood is fiber-ized there is no way for a CLEC to provide service.


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Originally Posted by Arthur P. Bloom
The Evil Empire (oops, Verizon) is systematically removing copper as FiOS is rolled out. Once an entire street or 'hood is fiber-ized there is no way for a CLEC to provide service.

The CLEC local loop access rules of 1996 apply only to copper and not fiber?


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Originally Posted by raidsystemtech
The CLEC local loop access rules of 1996 apply only to copper and not fiber?

Yep


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One thing that Verizon and all the other "evil empires" learned a long time ago is that profit from anything telephony is a slow, decades long process. CLECs tend to be acquired by interests that want to see a return on investment in months or, at worst, a year or two.

Fiber to the home sparked a heated debate among the healthy CLECs and the FCC, however, the "evil CLECs" decided to strike back and merge away all the competition. Eventually, fiber will be treated like copper and then it will be interesting to see how the CLEC market changes.

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CLEC's are already reselling Metro E circuits here. Have been for a while.

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Their all merging so they'll be too big to fail.

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