Pathway to an Optimized Future

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Information about Pathway to an Optimized Future

Published on March 16, 2016

Author: AndiCook


1. Page1 Pathway to an Optimized Future: Rethinking Your CLEC Infrastructure By: RickGarcia As you may know, there is a rising demand for voice infrastructure services that are easily accessible and adaptable into legacy CLEC operations. The CLEC is at a significant disadvantage compared to the interconnected VoIP provider. The biggest concern is how to adopt different processes and, frankly, a different mindset within your organization to change how things have been operating. No longer is there a question about deploying your own infrastructure for voice versus utilizing an infrastructure like Onvoy’s. When you can buy call paths and DID’s at very aggressive rates, the decision is simple. As early as three years ago, there were still communication companies who wanted to be a CLEC, but now that has all changed. The expanding rate center footprint and the easy adoption of infrastructure services are driving two major telecommunication trends: consolidation in the wholesale space and the decommissioning of legacy CLEC networks. I have witnessed the decommissioning of wireless networks, wholesale CLEC networks and even retail CLEC networks. Decommissioning? YES, decommissioning. Services that once took an iron class five switch to accomplish, can now be done by software on a server with an infrastructure partner like Onvoy. The success of today’s over the top business model validates that operating a legacy infrastructure with significant cost for switching equipment, SS7 links, LIS trunks, database services, regulatory filings, etc. combined with the revenue erosion from the decline of end- office switched access, is simply not optimal. Particularly as you take into account the shrinking addressable market a CLEC has compared to the vast addressable market of an interconnected VoIP provider. I often ask myself, “Why would anyone continue to run a classic CLEC business with such a limited addressable market and at such high operating costs.” That’s just crazy to me. The point I continue to hammer home is the shrinking addressable market with the continued growth of wireless-only households, interconnected VoIP providers, and the proliferation of the MSO’s infringing on a regional CLEC’s addressable market. The only way for an existing business to thrive is to increase that addressable market to that of a nationwide/global service

2. Page2 provider. We have helped hundreds of interconnected VoIP providers and CLEC’s thrive because of easy access to services that touch a larger portion of the population. It may mean doing things differently, but the legacy CLEC has to transform to stay competitive. Fortunately, I feel like the message is getting across because some in our industry have recognized their precarious position and are starting the transition to an interconnected VoIP model. With a partner like Onvoy, who understands that your hurdles are not in the technology and how you accomplish serving your end user, but in how you implement different processes within your organization, you too can make the transition confidently. We have the experience necessary to provide guidance and assistance through the entire transition. CLEC’s making the changes today and decommissioning their infrastructure will not only thrive, but generate significantly more immediate cash for their organization to help position them in a $70 Billion dollar market place. Instantly you reduce infrastructure and maintenance costs, you realize operational efficiencies that were not even apparent, you experience reductions in network and capacity planning costs, regulatory compliance and tariff filings and many others. That’s just the beginning… imagine what lowering your overhead could do for your new marketing budget… not to mention that you’ll enhance your customer’s experience because, as an experienced CLEC operator, you know more about this business than some of the largest VoIP providers in the space. You seem worried. Well if you continue to operate as you have been then you should be. If you want to transition your CLEC to an interconnected VoIP provider, you should be excited because the market is so big, you could grow your business beyond what you ever thought possible. I love the CLEC business, which is why I’m encouraging you that it’s time for change. I envision a new market where smart telecommunication providers, with profound history as CLECs are running the communication space and again on top of the world. Want to learn more about the pathway to an optimized future or brainstorm if this could be right for your organization? Contact me at (206) 239-4059.

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