To: Gary Korn who wrote (30617 ) 1/15/1998 6:08:00 PM From: Maverick Read Replies (3) | Respond to of 61433
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