As the communications industry has evolved, CLECs have had to adapt and embrace new techniques to stay ahead in a competitive market. First they controlled their numbers, then transport, but what is next for Competitive Local Exchange Carriers?
While many changes seemed like insurmountable obstacles, CLECs have always found a way to keep up. More often than not, this is due to the local advantage. No matter how much technology advances, many customers will always value a local presence.
In summary, they described three considerations to growth:
1. Resources – According to No Jitter, the first step to growing a CLEC is considering the available resources. It is important to prepare all of the equipment, staff, etc. before expanding. They recommend an external provider to make the process smoother.
2. Timetable – The second recommendation is to allow sufficient time to expand the CLEC’s market. Think about all of the logistics involved in the process and create a timeline that is reasonable and not rushed.
3. Service Offerings – Finally, it is important to maintain or exceed the status quo of service offerings in the new geographic area. Research the current offerings and find a way to surpass them before entering the market.
Competitive Local Exchange Carriers – better known as CLEC – are communication providers that compete with the local incumbent providers. The Telecommunications Act of 1996 made it possible for smaller companies – now known as CLECs – to compete with incumbent providers. They generally offer the same services at a lower price. Continue reading →
Bicom Systems offers tools and products to start your own CLEC as an ITSP.
How to Start a CLEC
In order to start a CLEC, you need to make some key decisions about the company, followed by a certification process. The first step is to decide whether the CLEC will be facilities-based or resale. After making that decision, the CLEC must undergo certification in the state(s) where it will offer services. The certification process varies by state, but tends to include the following steps:
Create a legal entity
File the CLEC in the state(s) where it will offer services
Participate in a public hearing
File a tariff
After certification, the CLEC will begin negotiation with an ILEC and eventually setup a connection and begin to offer services.
CLEC vs. ILEC
ILECs are Incumbent Local Exchange Carriers that compete against CLECs and existed prior to the Telecommunications Act of 1996.
Another good source of information on how to start a CLEC can be found at voip-info.org.
We have a similar article on How to Start an ITSP. In today’s market, any CLEC must consider its route to ITSP.