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State of the
CLEC Industry: Survival of the Fittest
Service:
Advanced Carrier Business Services
Report
Number: TX01-06SP
Publication Date: August 2001
Number of Pages: 41
Report Price: $2,995 USD
The CLEC (Competitive
Local Exchange Carrier) industry has experienced a highly published
general shakeup over the last year. This was due to inadequate business
plans and a lack of access to new capital caused by a change in
venture capital requirements. Many CLECs were unprofitable and several
were forced into bankruptcy.
However, there
are CLECs that are surviving and prospering. Those CLECs that have
made it past the initial shakeup have returned to proven fundamentals,
maximizing the use of available resources and infrastructures. Cahners
In-Stat Group believes that despite the growing dominance of the
ILECs in the telecom industry, many competitive service providers
are still doing well, and many more CLECs are coming into the market.
Since December of 1999 the CLECs have increased the amount of installed
lines from 8,318,244 to 16,400,000 in the first quarter 2001, which
accounts for 8.5% of all lines installed.
This report
examines the early CLEC setbacks, the recovery that is underway,
identifies several hundred CLECs, and profiles five of the most
viable. The movement in the tier two and tier three markets looks
promising and is an area the ILECs are not aggressively pursuing.
The surviving CLECs have revised their business plans and are beginning
to realize funding from selective venture capitalists.
Table
of Contents
- Executive Summary
- Methodology
- Introduction: The Relentless Competitors
- Market Overview
- The CLEC Industry
- CLEC Transformation
- Acquisitions and Bankruptcies
- Strategy during Transformation
- Moving Forward: 2001 and Beyond
- CLEC Subscriber Forecast
- The Next Five Years
- Major CLEC Profiles
- Covad Communications Company
- Time Warner Telecom
- McLeodUSA
- Net2000 Communications
- XO Communications
- Appendix 1. Current list of CLECs
List of Tables
- Table 1. Total End-User Lines
- Table 2. CLEC Industry Categories
- Table 3. Bankruptcy filings and consolidation of CLECs
- Table 4. Worldwide Broadband Subscriber Forecast
by Access Technology (000s)
- Table 5. Five Year Forecast: Worldwide Broadband
Service Revenues ($ in millions)
- Table 6. U.S. Broadband Subscriber Forecast
by Access Technology (000s)
List of Figures
- Figure 1. First Quarter 2001 DSL Lines in Service
- Figure 2. CLEC Access Line Growth (in millions)
- Figure 3. CLEC Network Route Miles
- Figure 4. Total U.S. CLEC Revenue ($'s in millions)
- Figure 5. Worldwide Broadband Subscribers (000s)
- Figure 6. Five Year Forecast: Worldwide Broadband
Service Revenues ($ in millions)
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