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To: djane who wrote (50667)	7/29/1998 6:40:00 PM
From: djane	Respond to of 61433

Infr@structure articles on CLECs [No ASND reference (amazingly enough), but lots of info on many large CLEC customers of ASND. At the 5/98 shareholder meeting, Mory posted a chart showing ASND relationships with the top 10 CLECs. I've posted only the initial article in the series.] Gearing Up To Compete: Infr@structure Technology Series zdnet.com Choices, Choices, Choices By Carol Wilson Equipment vendors are increasingly looking to CLECs as a key audience and are developing systems for that sector The competitive local exchange carrier industry right now resembles a new housing development - actually a very fancy new housing development. The land has been purchased, a dirt road has been cut, the foundations are being laid and there are floor plans and maybe a few models, but the big rush has yet to come. As a result, it's easy to predict success or failure for the hundreds of companies rushing into the local service market. International Data Corp. predicts near-term success, expecting competitive local exchange carrier (CLEC) revenue to triple this year to $15.3 billion. But the question isn't how much revenue a new carrier can capture in the early days of competition, when there is still the low-hanging fruit of small and midsized businesses that have gone underserved by the local phone companies for years. The more important question is which of these many new carriers will be around to tell the tale in 2005, and what will enable them to succeed? The year 2005 is when Forrester Research Inc. analyst Christopher Mines thinks most Americans will have a choice of local phone service providers, even if the only other option is someone reselling the current phone company's service. Laid out in these pages is some of the current thinking about how to best construct the local neighborhood infrastructure in which CLECs will exist. There is much good news to share: CLECs have been able to raise funds, in private placements and on Wall Street, and that money is being invested in network equipment and operating systems. Taking note of this trend, equipment vendors are increasingly looking to CLECs as a key audience and are developing systems that aren't just scaled-down versions of what they sell the Bell companies. The technology itself is ripe for use by companies that want to start small and grow: Moore's Law has its impact on the computer-based technology used in public networks as well, and systems of all types are getting smaller, smarter and faster. This is particularly true where operating systems are concerned. But technological advancements are also putting competitive carriers on the horns of new dilemmas. There are no longer always clear choices about how to approach the local service network. As the final story in our supplement details, CLECs must make strategic choices up-front, as they first approach the market - choices that likely will determine their later success. Should a CLEC build a voice network and add data, or vice versa? Is it better to partner with a long-distance company or build your own regional network? And maybe it's smart to consider alternate forms of access, including wireless, rather than sticking to leasing fiber-optic cable. Finally, every CLEC needs a hook - something other than price that makes it stand out in the crowd. Within these pages, we don't provide all the answers. But we do raise the relevant questions and offer many perspectives on what the answers might be. Forrester Research Inc. can be reached at www.forrester.com Table Of Contents: Access Options The OSS Difference Business Builds The Network Related Link: Finding The Competitive Edge - A Guide For CLECs Copyright (c) 1998 ZD, Inc. All Rights Reserved. Reproduction in whole or in part in any form or medium without express written permission of ZD, Inc. is prohibited. Inter@ctive Week and the Inter@ctive Week logo are trademarks of ZD, Inc.