Does
my ISP Qualify to become an ISP/CLEC?
In
this ever changing and evolving industry, ISPs have
to think about becoming ISP/CLECs. Many questions
come to mind. Here are the answers to the most commonly
asked questions, from the experts at CLEC Strategies:
Can I afford to become an ISP/CLEC?
If
an ISP wants to maximize its revenues, save money
and offer convergent services in order to stay competitive,
it can not afford to remain as just an ISP with dial-up
subscribers, web hosting, etc. You will be surprised
how inexpensive it can be to become a CLEC to cut
your telecommunications bills along with being able
to offer phone service and large data lines on a resale
basis to your already existing and growing customer
base.
Will
I remain or become more competitive by becoming an ISP/CLEC?
Most
definitely you will become much more competitive.
What are the short-term benefits of becoming an ISP/CLEC?
The
short-term benefits would be reduced costs to the
ISP. The new CLEC entity would now service the ISP
instead of the current ILEC.
What
are the long-term benefits of becoming an ISP/CLEC?
The
long-term benefits would include additional revenues
as an ISP/CLEC, greater value of your entity (IPO,
merger or acquisition). Many ISP/CLECs generate
greater profit margins from the telco services vs.
the ISP services.
What
are the regulatory costs affiliated with becoming an ISP/CLEC?
As
part of the CLEC Strategies "turn-key" solution,
fees for the certification process range from $1,200.00
to $7500.00 depending on the state (Phase I). This
includes strategies, state certification application
and filing, tariff drafting and filing as well as
obtaining all necessary operating codes to interface
with the ILEC or CLEC.
What
are the savings affiliated with becoming a "Switchless
Reseller" ISP/CLEC?
These
savings will vary depending on the state as well as
the ILEC. Typically they range from 12-32%.
What
are the savings affiliated with becoming a "Facility
Based" ISP/CLEC?
These
savings also vary depending on the interconnection
agreement, the state and the ILEC but are typically
greater because as a Facility Based CLEC, the interconnecting
ILEC/CLEC has to provide all inbound trunks from their
closest CO to your switch at NO cost. NOTE: You will
have some trunking costs but you can expect savings
greater than 50% on your internal costs and typical
revenues of 30% on telco services sold to end users.
What
are the additional revenue streams that I can generate
for my business as an ISP/CLEC?
These
are far too great to mention here. In one word
"UNE-P", ask our telecom managers about
the revenues around UNE-P services. Initially,
if you are selling dedicated services to your clients
(i.e. ISDN, PRI, T-1s, Frame Relay, etc.) you
currently make ZERO dollars on those trunk lines &
services.
Will
the new revenue streams outweigh the costs of becoming
an ISP/CLEC?
In
a single word YES they will, providing your
current telco costs make it financially feasible.
Will
I have to colo at the ILECs CO in order to make
money?
Not
necessarily. Colo at the ILEC CO is expensive. Your
tandem access switch can be in your facility depending
on the distance you are from the CO. DSLAMs
for xDSL, on the other hand must be collocated at
the CO.
What
are the costs affiliated with colo?
These
costs again vary depending on the CO and the ILEC.
The good news is that the CLEC Strategies negotiators
are some of the best in the industry.
How
difficult is it to get an interconnect agreement? What
are the costs and time frames involved? Should I opt-in
or negotiate a new agreement?
Getting
an interconnection agreement with the help of the
CLEC Strategies experts is NOT difficult at all. CLEC
Strategies experts currently work on interconnection
agreements with every major ILEC/RBOC in the USA.
Depending on whether we can "opt-in" (our
preference) or negotiate a new agreement will have
a major bearing on the final costs of obtaining an
interconnection agreement. The other variable is how
many interconnection agreements are necessary in order
to meet the goals and service areas of the new ISP/CLEC.
Sometimes interconnecting with another CLEC can prove
more beneficial and more than one interconnection
agreement is NEVER out of the question. For additional
information on the costs affiliated with interconnection
agreements, please contact us at 866-881-3229.
How
difficult is it to get a resale agreement?
Once
again, this is NOT a difficult process for the CLEC
Strategies staff. The rates are all defined in the
ILEC/CLEC tariff but they do vary depending on the
ILEC and the state.
What
is the time frame from start to finish?
Typically
speaking, the staff at CLEC Strategies can complete
the entire CLEC process in 120 days. The approval
timeframes at the state PUCs vary from 1 day
to 1 Year.
How
long will my certification process take?
Please
refer to the above answer. It will take CLEC Strategies
3-4 weeks, from the time we are contracted and receive
all necessary data from the client to prepare the
certification application, draft the tariffs for client
approval and complete the interconnection agreements.
How
long does it take to have telco grade CO equipment installed
(class 4/class 5 switches)?
Typically
speaking it will take between 8-12 weeks to have a
switch installed and turned-up. It is for this reason
that we work on the switch selection concurrently
with the certification process. The goal is to have
the switch deployed and beta tested concurrently with
the certification approval.
What
type of switch, sales & marketing and product training
will I need, and at what cost?
As
a new ISP/CLEC there will be additional training necessary
for many of your current staff members. CLEC Strategies
offers over 40 different training courses to meet
the specific needs of all clients.
Can
I reduce/consolidate the numbers or POPs I currently have
and set-up Virtual NXXs for greater coverage?
As
a "Facility-Based" CLEC you can co-locate
your POPS in one central facility right next to your
Tandem Access Switch. By utilizing virtual NXXs
you will have the ability to expand your coverage
to the entire LATA and have local numbers for not
only your current dial-up subscribers but also for
new ones.
What
about numbering resources?
As
a Facility-Based CLEC the interconnecting ILEC is
required to provide an initial bank of NPP-NXXs
(usually 10,000).
What
about number portability?
This
is an issue that can be easily resolved as well. No
need for changing access numbers.
Should
I consider becoming an IXC as well?
This
depends on whether you plan on doing InterLATA or
Interstate traffic. Long distance traffic is extremely
profitable. We will also need to consider VoIP in
order to determine the need for Interexchange status.
CLEC Strategies has the ability to handle the IXC
(State & Federal) implementation on a turn-key
basis as well.
What
are the advantages of hiring a consulting firm to walk
me through the process?
The
primary advantage to hiring a consulting firm like
CLEC Strategies is the vast knowledge and expertise
that they bring to the table. The CLEC Strategies
contacts with the ILECs, RBOCs and CLECs
nationwide make the interconnection process run smoothly.
The CLEC Strategies regulatory staff is perpetually
staying on top of the regulatory environment on both
a state and federal level, making your filing go more
efficiently. Additionally, EVERY client taken on by
CLEC Strategies over the past 7 years has been certified
NO ONE has been denied certification. Additionally,
most ISP staff are currently over burdened with current
responsibilities. The CLEC Strategies staff allows
you to run and grow your ISP while we work diligently
in the background to create you as an ISP/CLEC.
What
are the disadvantages of hiring a consulting firm to walk
me through the process?
The
only disadvantages would be the cost but the advantages
outweigh the minimal costs affiliated with becoming
an ISP/CLEC.
Should
I hire a telecom attorney or a consulting firm?
There
are many telecom attorneys more than capable
of handling the regulatory process. Unfortunately
they look at your plan from strictly the legal aspect
and not the business aspect. A consulting firm like
CLEC Strategies offers much more than regulatory work.
CLEC Strategies has and uses the top telecom attorneys
in the USA. Turn-Key solutions often save dollars
in the long run.
What
is the monthly re-occurring expenses as an ISP/CLEC?
The
monthly expenses as an ISP/CLEC include billing, Carrier
access Billing, provisioning and customer service
and tax compliance. It is usually recommended than
a new ISP/CLEC outsource these functions at least
for the first year of operation. All of these functions
can be brought in house after sufficient training.
What
should my total budget be for the ISP/CLEC process?
This will depend on the scope of the work and the
number of states certification is required in. Please
contact a Telecom Manager at
CLEC Strategies to discuss all of the costs and
budgetary figures.
What
does it take to get started on the ISP/CLEC process?
Contact CLEC Strategies at 866-881-3229 to discuss your
plans, have your opportunities evaluated, request the
CLEC Strategies Master Consulting Agreement, fill out
the CLEC
Strategies ISP/CLEC Questionnaire and get started
TODAY! |
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