Friday, February 01, 2008

Resellers Moving to Facilities

When Access Integrated bought Birch, it was the merger of two switchless resellers. Basically, a UNE-P type program. At the merger, it was announced they would begin moving to facilities.

In an interview in Phone+ with executives at 6 reseller CLEC's, the execs hint at a move to facilities in the works.

Smart idea. With forbearance petitions scattered throughout the FCC, it's time to hedge your bets. It will be a challenge though. All the execs complain about working with their carriers - from Level(3) to Qwest and about 20 others in the mix. Easy to complain about integration and execution when you are not a facilities based CLEC. We'll see how the move goes.

What does this have to do with you?

I'm glad you asked. Many ISP's resell ILEC DSL. The book on that could end January 9, 2010. What's your strategy for that?

In the same interview, the execs talk about the impossible MVNO environment. Only PNG has a cellular program running. And PNG hates it. It is not profitable and a huge challenge. I notice that XO never gave that a try. Qwest and Embarq are not MVNO - it's straight rebill.

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