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RealTime IT News

MRG Report Shows Service Bundling

A new report by MRG shows how CLECs (Competitive Local Exchange Carriers) and IXCs (Inter-Exchange Carriers) are aggressively pushing into the multi-billion dollar local phone service market with a mix of high speed data, DSL, system integration, voice and Internet services.

Given the growing demand for both Internet and "corporate intranet" applications, CLECs are tailoring their offerings to fit both large and small businesses over the next five years.

The carriers profiled include Frontier, Level 3, MCI WorldCom, Qwest, and WinStar in addition to other CLEC contenders.

Because of the emerging competition seen by the industry since 1996, the report provides a scorecard of acquisitions, alliances, and partnerships that helps investors understand how competitors in one market will create alliances in another.

WinStar and Lucent, for example, have a partnership that enables WinStar to offer its customers turnkey services and equipment packages.

The report also reviews how regulatory agencies will have different policies for cable and telco carriers in the next five years.

"The FCC clearly has a pro-competition agenda for local services, but expects faster progress from ILECs in opening local markets than from cable operators," says Gary Schultz, MRG President.

The report's regulatory update helps investors and decision-makers anticipate FCC policies and expectations about large ILEC mergers, such as between SBC and Ameritech.

The competitive attributes of each of the five major CLEC/IXC carriers also are discussed. These include infrastructure status, specific services and fees, current and future technology trends, strategic alliances, and acquisitions.

By describing each carrier's distinct usage of telecom equipment and its research and development activities, the report provides valuable insight into the carriers' strengths and strategies.



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