Massive Growth Predicted In CLEC ISP Marketplace
Newsbytes - July 20, 1998: 4:44 p.m. ET
SAN JOSE, CALIFORNIA, U.S.A. (NB) -- A report just out from Infonetics
Research predicts $936 million growth in network equipment expenditures
by CLEC (competitive local exchange carrier) ISPs (Internet service
providers) by the time the year 2000 rolls around.
According to the report, entitled "CLEC and Cable Operator ISP Opportunity
1998, "the surge in growth will be fueled by an aggressive deployment
of digital subscriber line (DSL) services by the CLEC ISPs in question.
According to Infonetics, competition on the service provider front has
become fierce since the passing of the Telecommunications Act of 1996.
The study notes that incumbent local exchange carriers (ILECs) that
once monopolized the local loop are now mandated to partner and in
essence compete with the growing ranks of CLECs.
Interestingly, the report also notes that the small but expanding
number of registered CLECs are adapting to customer's requests and
rapidly growing their customer base. CLECs are one of the fastest
growing ISP segments, the report says, and the growth potential is
tremendous.
"CLECs are aggressively deploying DSL services," said Greg Howard,
Infonetics' director of service provider programs. He added that of
the 20 facilities based CLECs that the firm interviewed, 90 percent
are rolling out DSL, "with most of the deployment happening this
year". "We are going to see a significant spike in the demand for
networking hardware. We are seeing major growth in the wide area
network (WAN), customer premises equipment (CPE), and network
management segments," he noted.
Infonetics' Web site is at infonetics.com .
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