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| ADVANCED
CARRIER STRATEGIES |
CLECs Succeed
in Volatile Environment
SCOTTSDALE, Ariz., August 28, 2001
- Despite having had to compete against a former monopoly, the CLEC
(Competitive Local Exchange Carrier) industry will challenge incumbents
head on and will continue to win market share. According to Cahners
In-Stat Group (http://www.instat.com),
a high-tech market research firm, CLECs have, after five-years of
trial and error, revised and compiled some very well thought out
business models. With the demand for Broadband services being very
high, CLECs can survive and even thrive.
In-Stat believes that the most important
challenges facing CLECs today are related to execution and proving
that they can generate cash flow. Recent high-profile failures,
press accounts, and falling share prices have impacted surviving
CLECs' abilities to sell services in the marketplace. According
to Ernie
Bergstrom, Senior Analyst
with In-Stat's Advanced
Carrier Strategies Group,
"The most important elements that will help CLECs get past these
challenges are execution and time. If CLECs consistently improve
their business, provide better service, and acquire more accounts,
they will improve their position in the market and with investors."
Customers require more bandwidth, faster access, at lower prices.
"This isn't a fad; it's a new way of life," says Bergstrom. The
CLECs' challenges are not to keep pace, but to set the pace by bringing
new products, innovative technologies and reliable support systems
and tools to the market.
In-Stat has also found that:
- Total CLEC end-user lines have
grown from 4.40% in December 1999 to 8.50% in December 2000.
- CLEC access lines will grow to
18.6 million by the end of 2001 and by 2005 CLEC revenues are
expected to exceed $110 billion dollars.
- One of the most successful markets
for CLECs has and will continue to be DSL (Digital Subscribing
Line) broadband service. In Q1 2001 CLECs had 476,250 DSL lines
in service providing 16% of the total U.S. DSL market.
The report, State
of the CLEC Industry: Survival of the Fittest(#TX0106SP),
examines the early CLEC setbacks and the recoveries underway. Also
identified are over 150 CLECs and profiles of the five most viable.
Companies such as McLeod USA, Time Warner Telecom, and XO Communications
are profiled.
To purchase this report, or for more
information please contact Erin
McKeighan at 480.609.4551; emckeighan@instat.com.
The report price is $2,995 USD.
Cahners In-Stat Group (http://www.instat.com)
covers the full spectrum of digital communications research from
vendor to end-user, providing the analysis and perspective that
allows technology vendors and service providers worldwide to make
more informed business decisions.
In-Stat is a unit of Cahners Business
Information (http://www.cahners.com),
a leading provider of critical information and marketing solutions
to business professionals and a member of the Reed Elsevier plc
group.
For more information,
contact:
Ernie
Bergstrom, Senior Analyst - Advanced
Carrier Strategies
Phone: 480.609.4504
Email: ebergstrom@instat.com
Janine Pragit,
Marketing Manager
Phone: 480.609.4548
Email: jpragit@instat.com
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