CLEC
Case Study | New CLEC Service Area
The Challenge
NEF worked to create a new service area for a CLEC offering VOIP, IPTV and broadband internet access to residential and small business customers.
Background
The CLEC provides service in six Tier 2 markets, delivering 130 channels over IP, telephone service and internet over a broadband connection. The CLEC competes directly with the incumbent telephone and cable providers.
Business Challenge
The CLEC needed to establish a diverse ring that passed in front of high density residential and business locations as well as several telephone central office locations. This dark fiber ring needed to be in place with a minimal amount of upfront capital required to activate.
Network Solution
NEF located an existing ring that had been purchased by an investment company out of bankruptcy. The ring was the only one available in this Tier 2 city and was not being publicly marketed. NEF located the owner of the fiber ring and negotiated a 20 year lease for the customer.
The use of the existing fiber network allowed the CLEC to open a new market with a manageable upfront investment. This solution enabled the customer to contend with the incumbent telephone and cable companies, who did not have any competition until the CLEC started offering service.
The Final Results
- The monthly break-even was achieved within the first 90 days of operation
- The CLEC was able to activate a new market in 90 days
- The CLEC is offering bundled telephone, cable and internet service for 25% off the price of the incumbents
Contact NEF today to find out more about dark fiber and how it can benefit your company.
