In light of regulatory changes over the last few years it is very clear that UNE-P is dead. The landscape for Competitive Local Exchange Carriers (CLEC’s) has changed forever. There has been considerable consolidation in the industry and some major fallout as well.

It is now time to assess the opportunities.

One that is getting considerable attention is IP Telephony. CLEC’s can take advantage of their existing customer base and convert them. A provider can offer companies an IP based phone system with all of the bells and whistles and a broadband internet connection all from one company. The benefits include superior customer service and customizable billing and programming.

The bells and whistles of an offering can include:

1. find me/follow me service
2. remote office
3. click to call
4. Outlook integration
5. unified voice mail
6. conference calling

Other benefits include:

1. Decreased telecom costs. VoIP service providers can charge significantly less (up to 50% less) for phone connectivity service.
2. Telecommuting phone costs are decreased. No major set-up fees. Voice communication takes place over broadband connection.
3. Moves, Adds and Changes cost less. New technology means the ability to move your own phone to a new workstation.
4. The phones can be taken out of the office and plugged in to any broadband connection. From that point, incoming calls will be delivered to the handset and outbound calls will show up as if they were made from the office. This is extremely beneficial when a company has to evacuate in light of an emergency such as a hurricane.

A CLEC can either resell another provider's service or set up their own network.

Setting up a network offers a CLEC complete control over the product offering. Assuming the back office services are already in place, the new product should pose only minor challenges to implement.

If the CLEC chooses to resell a service, they have many companies from which to choose. Most of these companies will private label and provide all back end services.

The CLEC has the benefit of knowing how to market this product which should be identical to marketing traditional phone service.

The start up costs is relatively small and there should be adequate funding available. Asset based facilities can work in this scenario using the on-site equipment.

Resources

Thermo Credit, LLC
639 Loyola Avenue, Suite 2565
New Orleans, LA 70113
Phone: 504-620-3100
Fax: 504-620-3103

Seth Block, EVP
Direct Phone: 504-620-3101
E-mail: seth@thermocredit.com

Jack Eumont, EVP
Direct Phone: 504-620-3102
E-mail: jack@thermocredit.com

About Thermo Credit, LLC

Thermo Credit, LLC is a financial services company focused exclusively on the telecommunications industry. Thermo Credit serves established, well-run companies that need capital to expand or improve their operations. We provide asset based solutions and work with partner companies to offer loans, lines of credit and capital investment programs. Thermo Credit is rich in telecom funding experience, which allows us to offer our clients insight beyond strictly business financing resources.