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Understanding What A CLEC Is Capable Of

A CLEC, or a Competitive Local Exchange Carrier is a smaller and generally locally operated telephone service company that offers some of today’s most vital business needs like voice and video services or data services. A CLEC is a designated service that is generally offered only to small of mid sized businesses. Lower prices are generally the biggest selling points of the Competitive Local Exchange Carrier.

Most of the CLEC equipment is comparable because of a piggy backing system that the Competitive Local Exchange Carrier has created. Their equipment is simply piggy backed along the larger company’s services. The Local Exchange Service (LEC) which is more commonly known as the phone company, is a rather intimidating competitor due to its size and power. But a well organized CLEC can offer the consumer better prices for what would appear to be the same services. In 1966 the phone companies were directed to offer a shared space arrangement with other companies in order to prevent the tearing down of natural resources in order to lay new wires.

Some CLEC arrangements are better than others. In some cases, the CLEC basically purchases space from the utility. In other cases, the CLEC houses their communication equipment right within the LEC’s equipment, which is a moderately confusing arrangement that leads to the Competitive Local Exchange Carrier being able to have 24 hour capabilities and access to all of the equipment, leading to better overall service.

Under the special purchasing arrangement the CLEC remotely keeps an eye on their servers and their equipment while the LEC is then responsible for alerting the CLEC about any changes in equipment capacity and capabilities, giving the Competitive Local Exchange Carrier the chance to upgrade right along with the utility.

Lower overhead always means lower prices can be offered to the consumer, which is one of the many benefits of the CLEC. The smaller company now has a chance to purchase equipment and space from the larger company at wholesale prices which is then passed onto the consumer. The CLEC is not required to make purchases, and it can be highly selective about the purchases that it chooses to make. Being able to provide the consumer with a lower fee often means that they are being quite selective.

CLEC services are offered all over the country and about 18% of businesses choose their services. Branding and familiarity is a part of this but reliability concerns can be counted in those decisions as well. Of course, since it’s all the same equipment and the same base, the CLEC is likely to offer the same reliability.

Under current laws the LEC does not need to share the fiber optic networks with the CLEC because the mandate only states that copper wiring versus the glass used in fiber optic networks needs to be available for sharing.

This means that there may be a bit of a rate war when fiber optics becomes more readily available in larger towns and cities. Only time will tell but for now the CLEC offers a low priced advantage.