CLECs Are Early Adopters of Technology
More Consolidation and Strong Revenue Growth from CLECs
This is an accurate statement as the ISPs and long distance carriers
are getting into the local phone biz. GTE just did to PacBell.
he subsidiary, GTE Communications Corp., is targeting small and mid-sized
businesses with a complete package of local, long-distance, wireless and data
services. After quietly approaching selected customers last fall, the company
on Monday started a radio and newspaper advertising campaign in the Bay
Area, Los Angeles and San Diego.
The nation's fourth-largest phone company, GTE is sweetening its offer with
discounts based on the amount of services used. But GTE, which is making a
similar package available to consumers, says it's trying to beat Pac Bell's
service -- not its prices.
Other powerhouse phone companies like AT&T and MCI have failed to make a
dent in Pac Bell's market, prompting much finger-pointing between the
competitors and Pac Bell. GTE Communications, however, has two distinct
advantages: It knows the local phone business, and it can offer a discounted
package of local and long-distance service that Pac Bell, AT&T and MCI
cannot.
The Telecommunications Act of 1996 forbids each of the regional Bells from
selling long-distance service to their local phone customers until they face
competition in their local markets. The ban doesn't apply to GTE, which never
was part of the Ma Bell monopoly and which has far more scattered markets
than the Bells.
In the Bay Area, GTE is using its own wireless network for the cellular and
paging parts of the package. For the other elements, though, it is largely
relying on other companies' networks, such as Pac Bell for local service and
Qwest Communications for long distance.
Exercpts of JON HEALEY's SJ Mercury News "GTE targets PaacBell" article |
