Worst reason to become a CLEC: improved cost structure. Or, to be
precise, it is a counterfactual reason, because it does not result in
improved cost structure.
This idea is driven by an incomplete understanding of what being a
CLEC entails, or, for the less critically thoughtful, the "free lunch"
fallacy. There is no free lunch. There is no such thing as an
easy-peasy regulatory reclassification that gets you the same stuff
you were paying before, but more cheaply.
Becoming a CLEC is a totally different business model than the one
you're in, and it entails magnitudinally more technological and
regulatory complexity. It's really almost a different vertical. You
should become a CLEC only if you want to become a CLEC, not if you
want to be an ITSP with a lower cost basis, because you won't be. It
is a very capital-intensive, non-trivial endeavour with high barriers
to entry for a good reason. There will be people out there who will
tell you that those barriers are low; they are on the bridge of
failing CLECs, treading water.
--
Alex Balashov - Principal
Evariste Systems LLC
260 Peachtree Street NW
Suite 2200
Atlanta, GA 30303
Tel: +1-678-954-0670
Fax: +1-404-961-1892
Web: http://www.evaristesys.com/
--
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