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.