The global Competitive Local Exchange Carriers (CLEC) market is anticipated to gain lucrative growth over the next six years owing to the varied advancements in the telecommunication market. Advancements such as LMDS, fiber optics network, and DSL is expected to accentuate CLEC market growth.
After the Telecommunication Act of 1996 was passed by the U.S. government, the CLEC concept evolved in the market forefront. Initiation of CLEC is expected to increase the competition between long distance and local phone service providers. CLECs are local area businesses that lease or purchase telephone switches and lines from major telecom operators and provide the end-users with alternate telephone services at a reasonable price and better quality. CLECs are preferred for local data transmission as they offer better service in terms of speed and bandwidth as compared to ILECs.
Key features such as flexibility and scalability along with cost-effectiveness are expected to elevate the CLEC market augmentation. CLEC offers high-speed data service to businesses, home users, and telecommuters, which is projected to accentuate the CLEC market development. Increasing demand for enhanced bandwidth, highly developed telecommunication services along with the augmented usage by customers for cost-effective tariff plans are expected to drive CLEC market growth over the forecast period. Customers are shifting towards reasonably priced packages and improved functionalities provided by CLECs leading to a considerable decline in the residential and business ILEC wireless access lines, which is anticipated to further amplify the CLEC market development.
The emergence of novel technologies such as fixed wireless and Metro Ethernet is expected to offer lucrative opportunities for the market expansion over the next six years. Continued growth of interconnected VoIP and wireless only households along with the ongoing erosion of wireless access lines offering network reliability is anticipated to fuel CLEC market growth. Additionally, differentiation of services and delivery of flexible bandwidth to prime office locations are projected to offer favorable circumstances for the market development.
High initial investment along with infrastructural requirements for the expansion of networks is expected to hamper CLEC market growth. Reluctant approach of service providers to expand the network coverage despite rising demand from customers is further projected to hamper the market Further, CLECs are more vulnerable against lower operating margins, which are expected to adversely affect their ability to generate huge cash flows.
The intensifying price competition within the CLEC market is associated with the entry of various participants such as voice over broadband providers and cable telephony operators. However, new players entering the market need to follow the stringent regulations set by the government.
The CLEC market can be segmented on the basis of service connection into end-user switch assess lines and VoIP subscriptions. On the basis of technologies applied, the market includes Fiber To The premises (FTTP), terrestrial fixed wireless, copper local loop, and coaxial cable to transmit data from one end to another. Several wireless telephone companies across the globe persist to deploy facilities-based VoIP services over fiber-based facilities along with developing advanced solutions to offer enhanced telephone and other services to the end-users, which are expected to trigger the CLEC market augmentation.
The North American region is expected to be the prominent region for the CLEC market owing to the well established industry standards and regulatory reforms. This trend is expected to continue over the forecast period. Rising IT infrastructure development in the Asia Pacific region, especially in countries such as China, Japan, and India is further expected to increase the demand for CLEC in this region.
The CLEC market is highly competitive with the presence of several market players including RCN Corp., AT&T Inc., XO Comm. LLC, Electric Lightwave, EarthLink Inc., InterGlobe Communication, CenturyLink Inc., WindStream Corp., Verizon Comm. Inc., World Communication Inc., Tw Telecom Inc., Granite LLC, Broadview Networks, and Enventis Telecom Inc.
Avail customized purchase options to meet your research needs:
Get your queries resolved from an industry expert. Request for a free product review before report purchase.
Speak to the report author to design an exclusive study to serve your research needs.
A testimonial for service excellence represented in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.