Working With a Competitive Local Exchange Carrier:

Competitive Local Exchange Carriers (CLEC) are telecommunication providers that compete with the larger incumbent local exchange carriers (ILEC), sometimes referred to as “the phone company”. A CLEC utilizes the ILEC’s local loop to deliver their services. Typically, they offer services that are priced below the ILEC’s.

CLEC limitations:

• Limited service area
• Can’t provide end to end solutions leading to potential finger pointing
• Regional providers - unable to offer services nationwide
• Unable to provide the suite of services that ILECs possess
• Limited experience servicing the enterprise customer

CLEC strengths:

• Pricing
• More experienced in integrated T1 technology
• Typically more responsive and flexible than ILECs
• Not tariffed - offer more pricing flexibility
• Typically ILEC’s largest customers - possess the buying power to resolve carrier issues quickly
• More “hands on” with installations - conduct site surveys, work directly with a customer’s vendors

Ways to reduce the risk of working with a CLEC:

• Work through an agent that has experience working with the CLEC
• Move a limited amount of business to the CLEC and gradually move more services as confidence grows
• Use CLEC for redundancy
• Use CLEC for less critical services

Ways to maximize the effectiveness of CLECs:

• Include CLECs in RFQs, to offer a benchmark and to keep the ILECs honest
• To diversify your portfolio of services, for bargaining power and as a safeguard against ILEC misconduct
• As a way to compare service levels

CLECs should be part of every company’s telecommunication portfolio. Working through an agent will facilitate the use of CLECs and should help prevent potential pitfalls.

Stroke Of The Pen Savings

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Stroke Of The Pen Savings

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