Friday, August 08, 2008

Will Paetec Survive?

It's one thing to run a private region CLEC when it can be all about your people. It's another thing to merge with 2 other public CLEC's. Now you are public with an (almost) nationwide footprint and 3800 employees. Now the dance is different.

It isn't about your employees. Now its about Execution of a Game Plan. It's about telling a new story to your prospects. It's about planning.

Except for some fiber that MacLeodUSA owned, PAETEC doesn't own network. So everything is purchased as a UNE or Special Access. PAETEC plays in VZ-Land more often than not, so it is likely Special Access more often than they would like.

After announcing a slow 2Q08, PAET dropped from $6 to under $3! It was at $13 in October of 2007. Paetec adjusted 2008 outlook as well - maybe due to a soft economy.

Today's Paetec is a Billion Dollar CLEC. Take some lessons from Intermedia and other CLEC's Arunas: Get some help before it crumbles.

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