Hi Mike,
Let me preface by stating the the terms data CLECs, or DLECs, along with other ISPs, national SPs, and regionals, often lead to confusion, and rightfully so. This is because there is no one in charge, not even the FCC and the PUCs, making sure that their agendas remain separate and discreetly identifiable, as, indeed, they increasingly are not.
With proper licensing, franchising and permits in hand, each is free to do whatever they choose to do, within the scopes of those individual sanctioned boundaries. Some will attempt to do it all.
I needed to state the foregoing because your questions seemed to be, on the surface, skewed to one genre, only. But they could be applied across the board, in a broader context, as well. I'll attempt to satisfy both, but I'll do it in a general way, avoiding any complications created by the consideration of unbundled network element (UNE) discussion, which maybe WTC would care to clarify for us later on.
"And from what I gather now, the Data CLEC must also be leasing the line on the other side of the CO too, right?"
As a general rule, based on your citing of Data CLECs such as Covad, Comdisco, Northpoint, Rhythms, etc., I'd say that was correct, but I would leave room for some specialized flavors of data CLECs (DLECs) even for this class of end user intermediate-speed delivery, who are, in various ways, facilities based as well.
Wireless comes to mind, as well as some smaller local companies like FTGX. But then you also have a growing number of regional pullers and resellers, whose scopes are often more limited than those of the nationals, and who, at the same time do not address individual end user end point payloads like the DSL plays, but whose business is to deliver bulk and/or integrated transport for businesses.
And there are many instances where DLECs routes and lines are pulled into BEL's COs in order to address the "back end" interconnect requirements you've mentioned (towards the core), as well.
But more often than not, the DSL-level DLECs you mentioned will pay for transit on the edge and backbone links, or "partner" with a QWST or LVLT or Williams, as opposed to providing them at the physical level, themselves.
Of course, the QWSTs and LVLTs who have partnered with the Covads and the Northpoints, etc., would provide this kind of transit in those cities where both have presence (that is, where both the DSL and the WAN provider coexist).
In some instances the DSLs will pay for transit to a larger national provider's backbone, via MFNX, who in turn delivers to the national at the optical cross connect.
Previously, this was done off site (away from the CO), primarily, but now it can be done inside the CO. The CO, in effect, becomes a fiber-based "meet me" point, just like those in colos, obviating many of the previous requirements which caused providers' to go "in and out" of the CO numerous times in order to interconnect with one another at an offsite location, such as a carrier hotel or a colo.
BEL, in effect, has created neutral cross-connect zones within its own buildings. This will undoubtedly have a negative effect on some colo businesses whose primary intent is/was to provide such a "meet me" service. This is only the tip of the iceberg, when you stop to consider the other implications of this agreement at the logistics and internetworking levels. Most importantly, however, is that it will open up the photonic layer for inter-carrier and end user exploitation for the first time.
It's very incestuous at some point. In the future, when lambdas (wavelengths) become networked, it will become even more so, as you will not always be able to tell whose "pipe" you are riding without a full time score keeper on the payroll.
"Also the statement above, "...without having to go through Bell Atlantic," makes no sense? Bell Atlantic owns the twisted copper pair between the customer premises and the CO. So that part of the Bell Atlantic network (which I always assumed was the most valuable part until my MFNX DD) still has to be leased out to the CLECs, correct? "
Not necessarily. Here in the Last Mile thread, as well as in some others which tend to focus on the delivery of home services, such as AOL, ATHM, etc., the emphasis is usually on residential and small business delivery platforms. This general area of focus seems to be carried forward in your questions.
But note how I started off this segment of the thread, by stating that this was a blockbuster deal for the "commercial" or business last mile space, having to do with business service, as opposed to residential. And then there is the obfuscation factor with regards to nomenclature, and just what it is that distinguishes a DLEC from an ISP, and where the boundaries are drawn between a regional provider of bandwidth and a backbone provider or NSP.
To net it out, so to speak, competing data providers exist outside the DSL group you mentioned, and these will be providing optical as well as traditional ATM, IP services to businesses and other SPs, to the exclusion of the Covads, Northpoints, et al, by using fiber delivery which in many cases will be joined in the BEL COs, as a result of this agreement, with those of MFNX. MFNX in this context becomes a least common denominator for many of the DLECs, who are both residential and commercial, in scope, as well as being regional and national.
To cover my bases with the regional and nationals, note the relationships that MFNX has established with the LVLTs and QWSTs, as well as with WMB/WCG. Like I said, it gets to be very incestuous and difficult to grasp at an intuitive level, when you consider all of the "partnering" (more like mutually agreed to, integration) which is going on all around us.
Granted, these concepts and actual goings on are taking place in the larger urban areas first, where there is critical mass to break the ice, but I can see this going deeper into the national networking fabric, over time.
Regards, Frank Coluccio |