[asterisk-users] Becoming a CLEC

[Robert-IPhone]

Agreed. And facilities based CLEC even scarier.
Regulatory / billing / PUC legals etc ugh


Sent from my iPhone 4S

On Nov 14, 2011, at 8:33 PM, Alex Balashov <abalashov at evaristesys.com> wrote:

> 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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