BLEC stands for “Building Local Exchange Carrier.” BLECs are companies that provide advanced telecommunications services within real estate developments, such as office buildings, apartment complexes, and gated communities. Their primary function is to integrate and offer services like internet access, telephone, and sometimes video or security services to tenants of these properties.
Key Features of BLEC:
- Infrastructure Management: BLECs manage the inside wiring of buildings, often partnering with real estate developers or building owners to deploy and manage this infrastructure.
- Service Offering: They typically offer a suite of services to tenants, which can include high-speed internet, VoIP telephony, video conferencing capabilities, and more.
- Partnerships with ISPs and Telcos: BLECs often work in conjunction with larger internet service providers (ISPs) or telecommunication companies to deliver services. The BLEC manages the infrastructure within the building, while the partner provides the external connectivity.
- Cost Efficiency for Tenants: By offering bundled services, BLECs can often provide cost efficiencies for tenants, who might otherwise have to deal with multiple service providers.
- Revenue Opportunities for Building Owners: Real estate developers or building owners can generate additional revenue by partnering with a BLEC, as they typically share a percentage of the service revenue generated by the BLEC from tenants.
BLECs came into prominence during the dot-com boom in the late 1990s and early 2000s, as the demand for high-speed internet services in commercial buildings surged. However, post the dot-com bust, many BLECs faced challenges due to reduced demand and high initial infrastructure costs. In today’s context, while the term BLEC isn’t as commonly used, the concept of providing integrated telecom services in buildings is still prevalent, especially with the rise of smart buildings and the increasing need for connected services.