Another year, another round of CLEC mergers and acquisitions. This year’s M & A’s were fueled by the mega-mergers of AT&T and Verizon, and has significantly altered the overall CLEC map. In addition, CLECs are behaving more conservatively buying companies only if the merger will yield immediate results and profits.

The prospect of early obsolescence of embedded network equipment is also driving competitive carriers to migrate towards advanced technologies that can adapt to the changing needs of the markets and that are perceived to have longer shelf life.

Cable Companies have targeted small and medium sized customers (SMB) and are VoIP technology to take away customers from the CLECs. Forbearance requests by the ILECS seek to relieve the incumbents from dominant carrier regulations and have driven the CLECs to band together and argue their case in front of the FCC and Congress.

On the whole, the future is bright for competitive carriers. The markets insatiable appetite for bandwidth is presenting numerous growth opportunities. New technologies are also lowering barriers to entry and making it easier for the CLECs to compete with the big boys. While CLECs have grown in size, they are operating leaner and attaining economies of scale within their territories of operation. With a smart game plan, CLECs have the potential to thrive.

For more insights into where the CLECs are now and where they are heading, please call us now at (312) 980-7823 or send us an email at info@nprg.com.  Our new Continuous Information Services offers client-customized portals which give clients accurate, current, and actionable information and analysis, including the ability to request specific research needed to stay competitive.