OT> Competitive LECs (CLECs) are "picking off the top," offering telecom services only<>
October 16, 1998 COMMUNICATIONS DAILY via NewsEdge Corporation : Competitive LECs (CLECs) are "picking off the top," offering telecom services only in top end of small business and residential market, BellSouth executives told reporters Wed. In news briefing, Krista Tillman, vp-small business services; Susan McLaughlin, pres.-consumer services; and Suzanne Detlefs, pres.- ad & publishing, discussed impact of Sec. 271 process on their customers. Tillman said "worry" is that BellSouth will be left with rural areas and other less profitable markets where universal service obligations require it to offer service while CLECs attack more lucrative areas with combined local and long distance packages that BellSouth is unable to match. Although CLECs are entering market aggressively in some regions, Tillman said, competitors are concentrating on "pockets" and don't cover broad service area. McLaughlin said competitors are unlikely to offer service in less profitable regions for "long period of time." She emphasized appeal of one-stop-shopping approach, especially for residential customers, and said company needs ability to provide long distance in order to remain attractive to customers: "When we put another offer out on the table, that is not enough." She said customers are looking for "more simplicity" and want "total bill to be combined," option that BellSouth can't offer. Most successful entrants into residential market are offering local and long distance and are "doing extremely well," McLaughlin said. BellSouth offers limited one-stop-shopping packages, providing access to variety of services, including wireless and wireline, and will expand with Internet and messaging services, she said. Tillman said BellSouth provides customers with high level of service to build customer loyalty, providing small businesses with one-on-one service management and paying attention to specific needs. |