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. TW Telecom, XO, Integra and Level 3 are CLEC’s. AT&T, Verizon and CenturyLink are LEC’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, like a few Internet T1’s or PRI’s, 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.