Montana State Auditor: Pyramid Scheme Stole $1.8 Million from Montana Residents
http://www.kfbb.com/news/local/87709867.html
By KFBB News Team
By The Associated Press
Story Updated: Mar 15, 2010 at 10:38 PM MDT
The State is trying to stop an alleged pyramid scheme from operating here in Montana. The State Auditor has issued a Cease and Desist order against a company that has reportedly taken more than $1.8 million from participating Montanans.
Multimedia
• Watch The Video
After many phone calls and complaints over the last few months, Montana Commissioner of Securities and Insurance Monica Lindeen announced that her office has ordered Kentucky-based Fortune Hi Tech Marketing to stop operating in our state.
"What they do is convince people that it's a great money-making venture,” Lindeen said. “Unfortunately, very few people actually make any money."
Nearly 1,300 Montanans have been recruited to be part of the alleged pyramid scheme. Commissioner Lindeen advises those people to immediately end their involvement with Fortune Hi-Tech Marketing.
She adds that especially during difficult economic times, more schemes surface and people are more likely to look for alternative ways to generate income.
"They have more scams today than ever,” said Helena resident Bud Lee. “People have to be wise."
"I think it happens everywhere, so I’m not surprised it happened here," said Joey Carter of Helena.
"When you lose your job, you find ways to keep the electricity on. So, I bet more of these things start to crop up," said Raylean Garrison of Helena.
Lindeen adds that members only benefit if they recruit others to join this alleged scam. She says her office is committed to keeping pyramid schemes out of Montana.
"In Montana, we will not tolerate forms of pyramid schemes and we are going to stop it. We don't want to see hard-working Montanans lose their money."
On its website, fortune hi tech marketing says it hopes for a quick resolution to the matter, but asks its montana reps to refrain from doing business in the meantime.
lindeen says she anticipates a hearing against FHTM and hopes that some Montanans can get their money back.
For more information or to make a complaint, she encourages you to call 1-800-332-6148
Tuesday, March 16, 2010
Saturday, March 13, 2010
Obama's Broadband Initiative
In February 2009, President Barack Obama signed landmark legislation into effect which has created tremendous opportunity for companies to deploy telephony (broadband) services into rural America. This sets out to be multi-faceted by creating new jobs (i.e. engineering, marketing, fiber deployment, construction, management, accounting, legal) by offering opportunities to the American heartland to have similar telephony services and major cities. Combinations of local, VoIP, IPtv and high speed internet access will flourish as a direct result of this additional federal funding. Under this new Stimulus package known as ARRA, $2.5 Billion dollars has been allocated for broadband in rural America.
The Rural Development brochure is available. http://www.rurdev.usda.gov/rd/pubs/RDBroadbandRpt.pdf
ISG-telecom can handle the application and certification processes needed to get a Federal Grant. www.isg-telecom.com
The Rural Development brochure is available. http://www.rurdev.usda.gov/rd/pubs/RDBroadbandRpt.pdf
ISG-telecom can handle the application and certification processes needed to get a Federal Grant. www.isg-telecom.com
Pros and Cons of CLEC certification
ISPs have made substantial leaps forward in becoming the "Next-Generation" telecom companies in the USA. Just as ISP’s are jumping into the telecom business, the local telephone companies are moving into the ISP business. Incumbent Local Exchange Carriers (ILECs) and Competitive Local Exchange Carriers (CLECs) have aggressively begun pursuing the Internet business as an addition to their existing telephone company services. Local telephone companies currently control most of the lines, which are required to reach end-user Internet customers. They can act not only as the suppliers of lines to ISPs, but by installing remote Internet access equipment in their existing central offices, they are able to provide Internet services.
Why should an ISP "TAKE THE PLUNGE" and file to become a CLEC? Here are a few of the reasons:
1. State by State mandated 13 to 19 percent below-tariff wholesale rates on circuits and services for switchless reseller CLECs;
2. Greater discounts of 20 to 45 percent below-tariff wholesale rates on circuits and services for facility-based CLECs;
3. Reciprocal Compensation at least until the FCC makes a ruling in this area;
4. Availability of carrier class services (UNE's) unavailable at retail levels;
5. Most importantly, the ability to profit from the telecom services used by your existing customer base and community;
6. Ability to be a "Peer" to the ILEC instead of just a customer.
Becoming a ISP/CLEC can lead to major cost savings as well as many potential new revenue streams for ISPs that are currently paying retail tariff prices on circuits provided by the ILECs and/or CLECs.
The Telecommunications Act of 1996 requires that the ILECs and other CLECs open their markets to competition. State Public Service Commissions are charged with regulating new CLECs under the Telco Act of '96.
In today’s competitive environment, an ISP desiring to interconnect with an ILEC and/or CLEC must do the following to become certified as a CLEC:
1. File an application with their State Public Service Commission;
2. File retail tariffs; and
3. Negotiate an interconnection agreement(s) with the ILEC and/or the CLEC's.
If the ISP is only offering intrastate services, the ISP needs to only apply for CLEC certification at the state level. However, if the ISP wishes to offer Interstate or InterLATA services, the ISP must also become certified as an IXC carrier with the Federal Communications Commission (FCC) as well by doing the following:
1. Filing an application with the Federal Communications Commission (FCC);
2. Filing tariffs with the Federal Communications Commission (FCC); and
3. Filing a copy of the FCC tariff with every State PUC that you wish to offer service in.
Although it is not mandatory, ISG-Telecom highly recommends, that the first thing an ISP needs to do to become a CLEC is to create a separate company, which can be owned by the same shareholders as the Internet company. It is important not to co-mingle the activities as well as revenues of the unregulated ISP business with the regulated CLEC entity. Once the CLEC entity is established, the ISP/CLEC, through ISG-Telecom will file with its State Public Utility Commission (PUC) and/or the FCC. This approval process can usually be accomplished by ISG-Telecom in as little as 120 days from date of filing. It will take ISG-Telecom between 30-45 days to prepare all necessary documentation to send to the PUC and the FCC, if necessary. The approval timetables vary, at the PUC level from State to State. These approval timetables range anywhere from one (1) day to six (6) months. See the PUC Timetables for your State
Simultaneously to the certification and tariffing process, ISG-Telecom must now either negotiate (or in many cases opt-in to) an Interconnection Agreement with the ILEC and/or CLEC whose services it intends to purchase, and whose LATA it plans to do business in. The Interconnection Agreement must include agreed upon loop and circuit rates as well as other interconnection points, rates and processes. Several thousands of these agreements have been negotiated and approved by State Public Utility Commissions since the passage of the Telecom Act of '96.
The Interconnect Agreement will also reflect the type of interconnection with the following elements:
1. How to connect the networks;
2. Where to connect to the networks;
3. Unbundled Network Element (UNE's) pricing and/or resale;
4. The quality of service elements;
5. The agreed-on reciprocal compensation rate for terminating traffic,
6. Issues including penalties for non-performance on the part of either the interconnecting ILEC and/or the CLEC.
7. Implementation schedules and manuals
Some ISPs, at least initially, will probably want to become switchless resellers rather than purchasing their own switching equipment (facility based reseller) and Unbundled Network Elements (UNE’s) from the local telephone company network. If the ISP/CLEC switchless reseller plans on adding its own switching equipment within a twelve month period, ISG-Telecom usually recommends that the certification application and tariffs reflect this, which can eliminate having to re-draft tariffs and certification papers within such a short period of time from the initial filing. It may be necessary to expand the flexibility of the interconnection agreement to take into consideration the Unbundled Network Elements (UNE’s). If the new ISP/CLEC does not have sufficient current costs to justify becoming a facility based CLEC, then ISG-Telecom will recommend beginning as a switchless reseller. It is our objective to redistribute current costs vs. increasing them. When enough savings are realized by implementing a switch, then it becomes cost justified to do so. This philosophy does not take into consideration the additional revenue streams generated, in addition to, the current revenues.
Plunging towards becoming an ISP/CLEC is very beneficial because it allows the Switchless Reseller ISP/CLEC, under it’s Resale Agreement to obtain discounts on the lines purchased by the CLEC. Much greater discounts would be obtained as a facility based ISP/CLEC or by entering into a term and volume agreement with the ILECs and/or CLECs. In a facility based environment, the ISP/CLEC also has the opportunity to receive all of their inbound trunks, to the Tandem Access Switch, at no cost from the ILEC and/or CLEC. A savings of 13 to 19 percent across the board (these discounts may be higher if ISG-Telecom negotiates a term and volume agreement on behalf of the client), under a negotiated agreement or by the use of switching facilities. This puts the ISP/CLEC in a much more competitive position within its markets. The savings on local loop lines can translate into either higher profits and/or lower price, both of which are key ingredients for a growing ISP/CLEC organization.
Additionally, the new ISP/CLEC will have to consider the set-up and implementation of full Back Office functions including:
1. Billing
2. Customer Service
3. Operator Services
4. Directory Assistance
5. 911
6. SS7
7. Tax Compliance
8. Tax Software
Back office functions should not scare you away from moving towards becoming an ISP/CLEC. Most of these functions can be set-up on an outsourced basis and performed by 3rd party vendors with reasonable and cost effective methodology. Depending on the service offering, and the convergence of products, the cost of set-up and implementation will vary. ISG-Telecom offers a wide array of 3rd party vendors for these functions based upon the goals and objectives of the individual clients. Some of these functions are an expense (billing & customer service) and some of them are an additional revenue stream (operator services & directory assistance). Flat rate service models are simple to bill but MOU billing can be extremely complex and more expensive to set-up. Long distance services are the most complex to bill and should always be done by a 3rd party vendor for at least the first 12 months of operation.
Furthermore, as a facility based CLEC, the ISP/CLEC should be able to participate in reciprocal compensation with the carriers, providing there is not a negative ruling from the FCC in up and coming months. Reciprocal compensation is the term used to describe the fees that interconnecting local carriers pay to terminate traffic on each other's network. As an example, where the ISP/CLEC and the interconnecting ILEC and/or CLEC have an interconnection agreement, both the ISP/CLEC and the interconnecting ILEC and/or CLEC must pay each other for the amount of local traffic (per minute) that each carrier terminates on each other's network. The payments for reciprocal compensation vary from ILEC to ILEC but are typically between 0.2 and 1.04 cents per minute. Although reciprocal compensation could be a new revenue source for the ISP/CLEC, we at ISG-Telecom NEVER recommend creating a business plan or business case model around reciprocal compensation. ISP/CLECs that choose to become CLECs to participate in reciprocal compensation should be aware of the current regulatory climate. Reciprocal compensation, in light of recent FCC considerations, should be considered "gravy" income ONLY.
Many ILECs have claimed, and fought, that reciprocal compensation for ISP-related traffic is not due, to the ISP/CLEC, under the existing FCC and state rules. These ILECs do not consider that the typically one way traffic, generally created by an ISP, to be reciprocal and thus are fighting the reciprocal compensation payments for ISP traffic. The ILECs also claim that reciprocal compensation is meant only for local calls, not calls to ISPs, which they claim, are interstate in nature. There has not been a current ruling from the FCC on this issue yet, but is expected sometime in 1999. These ILECs have withheld payments to CLECs who serve ISPs, who the ILECs believe are accumulating large amounts of ISP traffic for the purposes of collecting reciprocal compensation payments. In over 20 challenges to State PUCs, the reciprocal compensation payments for ISP traffic has been upheld as both local in nature and subject to the payment of reciprocal compensation on those states. In other words, the ILECs have lost every case, with the State PUCs, in which it has challenged the payment of reciprocal compensation. The FCC and numerous states are currently addressing this issue, which likely will be resolved, as part of total access reform and/or new internet service regulatory actions. It is most likely that reciprocal compensation will be re-formulated, with a lower percentage payment for ISP traffic and a higher percentage payment for conventional true voice traffic, within the next 12 months.
Other advantages in becoming an ISP/CLEC, besides obtaining discounts on lines and advantageous reciprocal compensation arrangements, is that by becoming a CLEC enables the ISP/CLEC to operate as a "PEER" to the ILEC, which creates a virtual level playing field. As opposed to the end-user retail customer status, an ISP/ CLEC can obtain a whole new group of negotiation rights, including quality of service, good faith negotiation, and regulatory protections/enforcement mechanisms.
Another advantages to becoming a facility-based CLEC is the opportunity to profit from long distance calls. Termination and origination fees may be collected and usually average between 0.017 and 0.03 per minute. These collected fees will outweighs the reciprocal compensation fees. Switching equipment is more expensive but the revenues can overcome the costs. In today's market environment, convergent services are taking the lead, as the #1 reason for customer retention, instead of price, as it was just a few years ago. Churning can be virtually eliminated by offering your customer base a package that is all inclusive of both internet and telephony services.
Looking at the ISP/CLEC arena from the bigger perspective, the direction of the ISP and telecom industry suggests that an ISPs who want to remain competitive must take a serious look at becoming an ISP/CLEC. With the telecom industry moving towards convergence models where voice, video and data will travel the same fiber optic lines into end-user homes, becoming a ISP/CLEC will be a critical step for a current ISP to position itself competitively.
Today’s market environment leaves an ISP with only four (4) choices:
1. Become a CLEC
2. Partner with a CLEC
3. Be bought out or merge with another large ISP and/or CLEC
4. Be pushed out of business
ISP/CLECs who control their own destiny will be in a position to take advantage of new service offerings, such as VoIP and the ISP that is already a CLEC is better positioned, under current regulations, to enter into VoIP as just one of many other telco services available.
In conclusion, the telecom industry is rapidly evolving, and ISPs need to change with it if they are going to remain competitive. Therefore, ISPs should contact ISG-Telecom and "TAKE THE PLUNGE" by becoming an ISP/CLECs. To find out if your ISP qualifies to become an ISP/CLEC fill out the by becoming an ISP/CLECs. To find out if your ISP qualifies to become an ISP/CLEC fill out the ISG-Telecom ISP/CLEC Questionaire and fax it back to us for immediate review and a NO COST initial analysis. www.isg-telecom.com
Why should an ISP "TAKE THE PLUNGE" and file to become a CLEC? Here are a few of the reasons:
1. State by State mandated 13 to 19 percent below-tariff wholesale rates on circuits and services for switchless reseller CLECs;
2. Greater discounts of 20 to 45 percent below-tariff wholesale rates on circuits and services for facility-based CLECs;
3. Reciprocal Compensation at least until the FCC makes a ruling in this area;
4. Availability of carrier class services (UNE's) unavailable at retail levels;
5. Most importantly, the ability to profit from the telecom services used by your existing customer base and community;
6. Ability to be a "Peer" to the ILEC instead of just a customer.
Becoming a ISP/CLEC can lead to major cost savings as well as many potential new revenue streams for ISPs that are currently paying retail tariff prices on circuits provided by the ILECs and/or CLECs.
The Telecommunications Act of 1996 requires that the ILECs and other CLECs open their markets to competition. State Public Service Commissions are charged with regulating new CLECs under the Telco Act of '96.
In today’s competitive environment, an ISP desiring to interconnect with an ILEC and/or CLEC must do the following to become certified as a CLEC:
1. File an application with their State Public Service Commission;
2. File retail tariffs; and
3. Negotiate an interconnection agreement(s) with the ILEC and/or the CLEC's.
If the ISP is only offering intrastate services, the ISP needs to only apply for CLEC certification at the state level. However, if the ISP wishes to offer Interstate or InterLATA services, the ISP must also become certified as an IXC carrier with the Federal Communications Commission (FCC) as well by doing the following:
1. Filing an application with the Federal Communications Commission (FCC);
2. Filing tariffs with the Federal Communications Commission (FCC); and
3. Filing a copy of the FCC tariff with every State PUC that you wish to offer service in.
Although it is not mandatory, ISG-Telecom highly recommends, that the first thing an ISP needs to do to become a CLEC is to create a separate company, which can be owned by the same shareholders as the Internet company. It is important not to co-mingle the activities as well as revenues of the unregulated ISP business with the regulated CLEC entity. Once the CLEC entity is established, the ISP/CLEC, through ISG-Telecom will file with its State Public Utility Commission (PUC) and/or the FCC. This approval process can usually be accomplished by ISG-Telecom in as little as 120 days from date of filing. It will take ISG-Telecom between 30-45 days to prepare all necessary documentation to send to the PUC and the FCC, if necessary. The approval timetables vary, at the PUC level from State to State. These approval timetables range anywhere from one (1) day to six (6) months. See the PUC Timetables for your State
Simultaneously to the certification and tariffing process, ISG-Telecom must now either negotiate (or in many cases opt-in to) an Interconnection Agreement with the ILEC and/or CLEC whose services it intends to purchase, and whose LATA it plans to do business in. The Interconnection Agreement must include agreed upon loop and circuit rates as well as other interconnection points, rates and processes. Several thousands of these agreements have been negotiated and approved by State Public Utility Commissions since the passage of the Telecom Act of '96.
The Interconnect Agreement will also reflect the type of interconnection with the following elements:
1. How to connect the networks;
2. Where to connect to the networks;
3. Unbundled Network Element (UNE's) pricing and/or resale;
4. The quality of service elements;
5. The agreed-on reciprocal compensation rate for terminating traffic,
6. Issues including penalties for non-performance on the part of either the interconnecting ILEC and/or the CLEC.
7. Implementation schedules and manuals
Some ISPs, at least initially, will probably want to become switchless resellers rather than purchasing their own switching equipment (facility based reseller) and Unbundled Network Elements (UNE’s) from the local telephone company network. If the ISP/CLEC switchless reseller plans on adding its own switching equipment within a twelve month period, ISG-Telecom usually recommends that the certification application and tariffs reflect this, which can eliminate having to re-draft tariffs and certification papers within such a short period of time from the initial filing. It may be necessary to expand the flexibility of the interconnection agreement to take into consideration the Unbundled Network Elements (UNE’s). If the new ISP/CLEC does not have sufficient current costs to justify becoming a facility based CLEC, then ISG-Telecom will recommend beginning as a switchless reseller. It is our objective to redistribute current costs vs. increasing them. When enough savings are realized by implementing a switch, then it becomes cost justified to do so. This philosophy does not take into consideration the additional revenue streams generated, in addition to, the current revenues.
Plunging towards becoming an ISP/CLEC is very beneficial because it allows the Switchless Reseller ISP/CLEC, under it’s Resale Agreement to obtain discounts on the lines purchased by the CLEC. Much greater discounts would be obtained as a facility based ISP/CLEC or by entering into a term and volume agreement with the ILECs and/or CLECs. In a facility based environment, the ISP/CLEC also has the opportunity to receive all of their inbound trunks, to the Tandem Access Switch, at no cost from the ILEC and/or CLEC. A savings of 13 to 19 percent across the board (these discounts may be higher if ISG-Telecom negotiates a term and volume agreement on behalf of the client), under a negotiated agreement or by the use of switching facilities. This puts the ISP/CLEC in a much more competitive position within its markets. The savings on local loop lines can translate into either higher profits and/or lower price, both of which are key ingredients for a growing ISP/CLEC organization.
Additionally, the new ISP/CLEC will have to consider the set-up and implementation of full Back Office functions including:
1. Billing
2. Customer Service
3. Operator Services
4. Directory Assistance
5. 911
6. SS7
7. Tax Compliance
8. Tax Software
Back office functions should not scare you away from moving towards becoming an ISP/CLEC. Most of these functions can be set-up on an outsourced basis and performed by 3rd party vendors with reasonable and cost effective methodology. Depending on the service offering, and the convergence of products, the cost of set-up and implementation will vary. ISG-Telecom offers a wide array of 3rd party vendors for these functions based upon the goals and objectives of the individual clients. Some of these functions are an expense (billing & customer service) and some of them are an additional revenue stream (operator services & directory assistance). Flat rate service models are simple to bill but MOU billing can be extremely complex and more expensive to set-up. Long distance services are the most complex to bill and should always be done by a 3rd party vendor for at least the first 12 months of operation.
Furthermore, as a facility based CLEC, the ISP/CLEC should be able to participate in reciprocal compensation with the carriers, providing there is not a negative ruling from the FCC in up and coming months. Reciprocal compensation is the term used to describe the fees that interconnecting local carriers pay to terminate traffic on each other's network. As an example, where the ISP/CLEC and the interconnecting ILEC and/or CLEC have an interconnection agreement, both the ISP/CLEC and the interconnecting ILEC and/or CLEC must pay each other for the amount of local traffic (per minute) that each carrier terminates on each other's network. The payments for reciprocal compensation vary from ILEC to ILEC but are typically between 0.2 and 1.04 cents per minute. Although reciprocal compensation could be a new revenue source for the ISP/CLEC, we at ISG-Telecom NEVER recommend creating a business plan or business case model around reciprocal compensation. ISP/CLECs that choose to become CLECs to participate in reciprocal compensation should be aware of the current regulatory climate. Reciprocal compensation, in light of recent FCC considerations, should be considered "gravy" income ONLY.
Many ILECs have claimed, and fought, that reciprocal compensation for ISP-related traffic is not due, to the ISP/CLEC, under the existing FCC and state rules. These ILECs do not consider that the typically one way traffic, generally created by an ISP, to be reciprocal and thus are fighting the reciprocal compensation payments for ISP traffic. The ILECs also claim that reciprocal compensation is meant only for local calls, not calls to ISPs, which they claim, are interstate in nature. There has not been a current ruling from the FCC on this issue yet, but is expected sometime in 1999. These ILECs have withheld payments to CLECs who serve ISPs, who the ILECs believe are accumulating large amounts of ISP traffic for the purposes of collecting reciprocal compensation payments. In over 20 challenges to State PUCs, the reciprocal compensation payments for ISP traffic has been upheld as both local in nature and subject to the payment of reciprocal compensation on those states. In other words, the ILECs have lost every case, with the State PUCs, in which it has challenged the payment of reciprocal compensation. The FCC and numerous states are currently addressing this issue, which likely will be resolved, as part of total access reform and/or new internet service regulatory actions. It is most likely that reciprocal compensation will be re-formulated, with a lower percentage payment for ISP traffic and a higher percentage payment for conventional true voice traffic, within the next 12 months.
Other advantages in becoming an ISP/CLEC, besides obtaining discounts on lines and advantageous reciprocal compensation arrangements, is that by becoming a CLEC enables the ISP/CLEC to operate as a "PEER" to the ILEC, which creates a virtual level playing field. As opposed to the end-user retail customer status, an ISP/ CLEC can obtain a whole new group of negotiation rights, including quality of service, good faith negotiation, and regulatory protections/enforcement mechanisms.
Another advantages to becoming a facility-based CLEC is the opportunity to profit from long distance calls. Termination and origination fees may be collected and usually average between 0.017 and 0.03 per minute. These collected fees will outweighs the reciprocal compensation fees. Switching equipment is more expensive but the revenues can overcome the costs. In today's market environment, convergent services are taking the lead, as the #1 reason for customer retention, instead of price, as it was just a few years ago. Churning can be virtually eliminated by offering your customer base a package that is all inclusive of both internet and telephony services.
Looking at the ISP/CLEC arena from the bigger perspective, the direction of the ISP and telecom industry suggests that an ISPs who want to remain competitive must take a serious look at becoming an ISP/CLEC. With the telecom industry moving towards convergence models where voice, video and data will travel the same fiber optic lines into end-user homes, becoming a ISP/CLEC will be a critical step for a current ISP to position itself competitively.
Today’s market environment leaves an ISP with only four (4) choices:
1. Become a CLEC
2. Partner with a CLEC
3. Be bought out or merge with another large ISP and/or CLEC
4. Be pushed out of business
ISP/CLECs who control their own destiny will be in a position to take advantage of new service offerings, such as VoIP and the ISP that is already a CLEC is better positioned, under current regulations, to enter into VoIP as just one of many other telco services available.
In conclusion, the telecom industry is rapidly evolving, and ISPs need to change with it if they are going to remain competitive. Therefore, ISPs should contact ISG-Telecom and "TAKE THE PLUNGE" by becoming an ISP/CLECs. To find out if your ISP qualifies to become an ISP/CLEC fill out the by becoming an ISP/CLECs. To find out if your ISP qualifies to become an ISP/CLEC fill out the ISG-Telecom ISP/CLEC Questionaire and fax it back to us for immediate review and a NO COST initial analysis. www.isg-telecom.com
"Revenue Streams" for ISP/CLEC's or New Entrants
"Revenue Streams" for ISP/CLEC's or New Entrants
With the passage of the Telecommunications Act of 1996, the competition doors were opened on the lucrative market of providing local dial tone and telecom services for carriers other than the Incumbent Local Exchange Carriers (ILEC's) and/or the Regional Bell Operating Companies (RBOC's). In 1996 there were 50 Competitive Local Exchange Carriers (CLECs). Currently there are over 500 facilities based carriers and resellers certified with the various state commissions. Will you be one of them in the future? Consider the following points specifically aimed at cable companies and ISPs.
Because the opportunity in providing local dial tone is truly vast, analysts are predicting that incumbent local exchange carriers (ILECs) will lose up to 25% of the local exchange market over the next 5 years. Providing competitive local phone service was a $1 billion business in 1996. The growth in local lines during the 1980s and 1990s has been growing far greater than the 2% to 3% of the 1960s and 1970s driven by internet dedicated lines and the push for second and third voice lines in homes and businesses across the country. New entrants can play an especially important role in this line growth where new service can be provided as competitive quotes to the ILEC’s services. Moreover, an ISP/CLEC can offer much more than local phone services and compete head to head with the Incumbent Local Exchange Carriers’ (ILECs) more cumbersome and non-complete offerings.
The best news is ISPs are superbly positioned to move into the competitive local exchange business. ISPs have a built-in customer base, particularly for data access which naturally leads to gleaning new revenues from the existing customer base by adding voice services and features on a consolidated bill. Furthermore, additional and auxiliary services that the ISP can resell include long distance, conference calling, calling cards, internet service, and even cellular or paging services, on a single bill broken out by customer identification codes and other management reports.
Other reasons ISPs are well positioned to become CLECs:
ISPs have advantages in local, long distance, and data services through strategic alliances, bulk purchasing of long distance minutes, VoIP deployments, convergent billing, and the latest in switching equipment (Class 4/5 switches) without the expense of legacy equipment unable to deliver high speed digital services.
Access to existing ILEC network at discounts on a pure resale basis as well as in converting their current circuits from retail pricing to wholesale pricing. ISPs can additionally configure their systems to deploy tandem switches in each LATA to gain free inbound T-1s from the ILEC while consolidating their modem pools at the tandem for cloud access.
No existing baggage and low relatively low regulatory requirements compared to the ILECs’ regulated rate of return and cost study legacies for pricing.
Information services for LAN/WAN customers including web page design and hosting, help desk services, configuration, and maintenance services for company internal communications systems.
New Revenue Streams-Beyond the Basics
Here are 30 different revenue-generating options from which an ISP or cable company can deploy to generate revenue from a switched platform:
* Private Line DS-1
* Private Line DS-3
* Private Line OC-3
* Private Line OC-12
* Native LAN Interconnect 10BaseT to 100BaseT
* Alternate access from business to IXC pop
* Alternate access from business to ISP pop
* Residential POTS & features
* Voice Mail
* Residential Internet (1-Meg Modem and Dial-Up)
* Business telephony - Centrex
* Business telephony - ISDN
* Business Lines with features
* Web hosting
* Security / firewall services
* Back-up domain name server
* Subletting space as a carrier: Co-Location space rental
* Gateway services - VoIP
* Gateway services - Long Distance Arbitrage
* Reciprocal compensation
* Resale of private peering & NAP access
* Systems integration services & help desk
* VPN & Extranet
* Traditional telephony over PSTN
* Internet Telephony
* Fax over IP
* Fax over PSTN
* Chat, news groups, email
* Frame Relay (switched data access)
* Long Distance –intrastate, intraLATA, and interstate
* Wholesale Fiber Services (Dark Fiber)
* Selling of Lambda (optical fiber channel/segment)
* Conference Calling (outsourced or Meet Me circuits)
* Voice over IP
Follow These Eleven Steps to Ensure your CLEC Success:
The creation of a CLEC entity and operating company is not a simple process if it is to be done correctly. Often and ISP or cable company is unprepared to jump right into it without having a mentor or coach to assist in the process. Additionally, personnel often lacks the telecom background needed to run a successful CLEC. See the ISG "Equity Consulting" Section. It is not, however, an impossible mountain to climb, as we can see, by the large numbers of ISPs and cable companies and even Real Estate companies that have successfully made the transition. As general guide, follow the guide below to assist your company make the jump to telecom service availability and profitability.
1. Define the business: financial business case model, have ISG-Telecom complete the market strategy, service area and services offered;
2. Hire ISG-Telecom Consultants to handle the conversion process on a turn-key basis;
3. Define legal issues: have ISG-Telecom review legal factors;
4. Define regulatory issues: have ISG-Telecom review state, federal, Bellcore requirements, and negotiate interconnection agreement with ILEC(s);
5. Define the operational process: network model, resource requirements. This can include in-house arrangements or outsourced solutions;
6. Prepare the business plan: market characterization, strategy, risk assessment, financial models
7. Create detailed network design: detailed architecture, personnel requirements;
8. Procurement: Utilize the ISG-Telecom "Strategic Partners" to acquire access, switching & transport facilities, operations support systems, and human resource acquisition;
9. Installation: site selection, site readiness, equipment installation and provisioning;
10. Operations and Integration: sales and marketing, operations support systems (OSS) and piggy-back the ISG-Telecom Master Agreements for back-office;
11. Training: Complete the sales, marketing and product training courses offered by ISG-Telecom trainers
What Support Expertise Will I Need To Be a CLEC?
A good consulting firm such as ISG-Telecom, will arrange for your steps to be fairly painless and allow you and your staff to do as much or little of the process yourself. For example, if you have a current attorney, a consultancy should be able to work with your counsel to bridge the gap in general law practice and telecom specific practice. If your technical staff is gung-ho to do switch selection with little guidance from the consultant or with total guidance from the consultant, both avenues should be able to be accommodated. Training on running your CLEC arm through the sales of unfamiliar products to your current product line should be available at a reasonable cost. Outside vendors for billing, customer service, SS7, back office, directory assistance, and operator services should be recommended and client suggestions should be willingly investigated by your consultant. Switchless Reseller’s do not require all of the elements below, whereas a Facility Based CLEC will. Many ISP’s have a limited number of these personnel already on staff, so minor augmentation of their current staff is all that will be required of them. Additionally, some business plans for data-only CLECs could actually skip a few of these items without major concern in a start-up situation.
There are many different and new categories that every ISP/CLEC needs to consider in becoming a telco. Before frustration sets in, remember, most of these functions can be outsourced or even contracted through the ILEC with whom you are interconnected. E911 is noticeably absent from this list as it is generally part of your interconnection agreement. All of the following can be co-ordinated by the staff at ISG-Telecom through its partnerships with industry leaders and 3rd party vendors. ISG-Telecom also has national contracts for many of these services and offers it's clients the opportunity to piggy-back those contracts for additional cost savings.
Business Office
Sales
Training
Marketing
Sales and Trunking Forecasts
Service Order Handling
Collections
Billing Resolution
Expansion and Service Area Plans
Accounting Office
Billing and local Telecommunications taxation by community of service
Affiliate Billing (Long Distance, Conference Calling, Calling Cards, Internet, Cellular, Paging, etc.)
Carrier Reconciliation’s
Billing Disputes Resolution
Fraud Resolution
Credit Issues
Business Customer Service Center
Centrex Customer Interface
Complex Order Processing
Customer Advocate
Special Service Circuits
Private Line Service and Installation
Equipment Provisioning
Equipment Assignment (Hardware)
Equipment Assignment (Software)
Customer Records
Circuit Records
Interconnection Trunking Forecasts and provisioning
Service Activation
Install and Test Line Cards (Data & Voice)
Assignments (OE, DN, Cross-connect, Cable)
Service Order Activation (Lines)
Cross-connect MDF Line Card Appearance to the Customer Appearance
Distribute Customer Premise Equipment (CPE) to the End User
Network Administration
Traffic Controls
Traffic Monitoring
Traffic Management
Network Data
Data Maintenance Center
LAN/WAN
Internet Connectivity and Routing
Administration Maintenance
Workstation Set-up and Support
Network Engineering
Maintenance (Switching / Transport / Access)
Work Force Administration
Repair Center Personnel
Network & Network Element Analysis
Network & Network Element Surveillance
Alarm Surveillance
Central Office Work
Network Performance
Network Element Performance
Tier II Support
Tier III Support
NMC Link Administration & Maintenance
Switch Software Administration / Patch Application
Switch Translations Maintenance
Switch Hardware Baseline / Updates
Switch Hardware Repair & Return
STP / SCP
Signaling Link Maintenance
Signaling Traffic Analysis
Repair Service Bureau
Test Desk
Trouble Ticket Creation
Trouble Ticket Tracking
Trouble Ticket Referral
Trouble Ticket Closure
Modem Repair & Return Front-end Logistics
Monthly Reports
Assignment Records
Disaster Recovery
Contingency Strategy
Contingency Plans
Operator Services
0- dialing
Directory Assistance
0-11-
Credit Card Billing
Local and/or National Directory Assistance inquiries
Direct Connect Features
Security
Line Traps
Call traces
Fraud Detection
Building Security
Switch Security
NMC Link Security
Facility (beyond points of demarcation)
Planning
Engineering
Line Crew
Installation & Repair
Cable Repair
Conclusion
While getting into a new line of business always requires changes to be made, becoming an operating CLEC is not as easy as setting up an Internet Service Provider (ISP) due to the regulatory considerations and complexity of meeting telephony standards. Because people take telephony service for granted, outages and outstanding service must be givens to any business plans. The two things an ISP needs who is looking to make the transition are: a full service consultant and a full service switch vendor. Moving to a lower priced switch vendor can be acceptable if your staff or new hires are particularly adept at learning the full range of capabilities in your new switch. As a switchless reseller, a full understanding of your reseller arrangement and the service standards established by your resellers agreement must be constantly monitored for performance. For either type of service, billing is the key to your success or lack of success and small start-ups are well advised to utilize an outside vendor with similar small clients while the start-up is in its infancy. This allows one of the most important functions to be run by proven outside resources while some of the service and installation issues are worked out in-house.
Coordination is key and having a coaching consultant is one of the best investments you can make during this process. This enables you to learn without being alone and gives you a fallback expert when even minor questions come up during or after the process. See the ISG-Telecom page for turnkey ISP/CLEC solutions at http://www.isg-telecom.com
With the passage of the Telecommunications Act of 1996, the competition doors were opened on the lucrative market of providing local dial tone and telecom services for carriers other than the Incumbent Local Exchange Carriers (ILEC's) and/or the Regional Bell Operating Companies (RBOC's). In 1996 there were 50 Competitive Local Exchange Carriers (CLECs). Currently there are over 500 facilities based carriers and resellers certified with the various state commissions. Will you be one of them in the future? Consider the following points specifically aimed at cable companies and ISPs.
Because the opportunity in providing local dial tone is truly vast, analysts are predicting that incumbent local exchange carriers (ILECs) will lose up to 25% of the local exchange market over the next 5 years. Providing competitive local phone service was a $1 billion business in 1996. The growth in local lines during the 1980s and 1990s has been growing far greater than the 2% to 3% of the 1960s and 1970s driven by internet dedicated lines and the push for second and third voice lines in homes and businesses across the country. New entrants can play an especially important role in this line growth where new service can be provided as competitive quotes to the ILEC’s services. Moreover, an ISP/CLEC can offer much more than local phone services and compete head to head with the Incumbent Local Exchange Carriers’ (ILECs) more cumbersome and non-complete offerings.
The best news is ISPs are superbly positioned to move into the competitive local exchange business. ISPs have a built-in customer base, particularly for data access which naturally leads to gleaning new revenues from the existing customer base by adding voice services and features on a consolidated bill. Furthermore, additional and auxiliary services that the ISP can resell include long distance, conference calling, calling cards, internet service, and even cellular or paging services, on a single bill broken out by customer identification codes and other management reports.
Other reasons ISPs are well positioned to become CLECs:
ISPs have advantages in local, long distance, and data services through strategic alliances, bulk purchasing of long distance minutes, VoIP deployments, convergent billing, and the latest in switching equipment (Class 4/5 switches) without the expense of legacy equipment unable to deliver high speed digital services.
Access to existing ILEC network at discounts on a pure resale basis as well as in converting their current circuits from retail pricing to wholesale pricing. ISPs can additionally configure their systems to deploy tandem switches in each LATA to gain free inbound T-1s from the ILEC while consolidating their modem pools at the tandem for cloud access.
No existing baggage and low relatively low regulatory requirements compared to the ILECs’ regulated rate of return and cost study legacies for pricing.
Information services for LAN/WAN customers including web page design and hosting, help desk services, configuration, and maintenance services for company internal communications systems.
New Revenue Streams-Beyond the Basics
Here are 30 different revenue-generating options from which an ISP or cable company can deploy to generate revenue from a switched platform:
* Private Line DS-1
* Private Line DS-3
* Private Line OC-3
* Private Line OC-12
* Native LAN Interconnect 10BaseT to 100BaseT
* Alternate access from business to IXC pop
* Alternate access from business to ISP pop
* Residential POTS & features
* Voice Mail
* Residential Internet (1-Meg Modem and Dial-Up)
* Business telephony - Centrex
* Business telephony - ISDN
* Business Lines with features
* Web hosting
* Security / firewall services
* Back-up domain name server
* Subletting space as a carrier: Co-Location space rental
* Gateway services - VoIP
* Gateway services - Long Distance Arbitrage
* Reciprocal compensation
* Resale of private peering & NAP access
* Systems integration services & help desk
* VPN & Extranet
* Traditional telephony over PSTN
* Internet Telephony
* Fax over IP
* Fax over PSTN
* Chat, news groups, email
* Frame Relay (switched data access)
* Long Distance –intrastate, intraLATA, and interstate
* Wholesale Fiber Services (Dark Fiber)
* Selling of Lambda (optical fiber channel/segment)
* Conference Calling (outsourced or Meet Me circuits)
* Voice over IP
Follow These Eleven Steps to Ensure your CLEC Success:
The creation of a CLEC entity and operating company is not a simple process if it is to be done correctly. Often and ISP or cable company is unprepared to jump right into it without having a mentor or coach to assist in the process. Additionally, personnel often lacks the telecom background needed to run a successful CLEC. See the ISG "Equity Consulting" Section. It is not, however, an impossible mountain to climb, as we can see, by the large numbers of ISPs and cable companies and even Real Estate companies that have successfully made the transition. As general guide, follow the guide below to assist your company make the jump to telecom service availability and profitability.
1. Define the business: financial business case model, have ISG-Telecom complete the market strategy, service area and services offered;
2. Hire ISG-Telecom Consultants to handle the conversion process on a turn-key basis;
3. Define legal issues: have ISG-Telecom review legal factors;
4. Define regulatory issues: have ISG-Telecom review state, federal, Bellcore requirements, and negotiate interconnection agreement with ILEC(s);
5. Define the operational process: network model, resource requirements. This can include in-house arrangements or outsourced solutions;
6. Prepare the business plan: market characterization, strategy, risk assessment, financial models
7. Create detailed network design: detailed architecture, personnel requirements;
8. Procurement: Utilize the ISG-Telecom "Strategic Partners" to acquire access, switching & transport facilities, operations support systems, and human resource acquisition;
9. Installation: site selection, site readiness, equipment installation and provisioning;
10. Operations and Integration: sales and marketing, operations support systems (OSS) and piggy-back the ISG-Telecom Master Agreements for back-office;
11. Training: Complete the sales, marketing and product training courses offered by ISG-Telecom trainers
What Support Expertise Will I Need To Be a CLEC?
A good consulting firm such as ISG-Telecom, will arrange for your steps to be fairly painless and allow you and your staff to do as much or little of the process yourself. For example, if you have a current attorney, a consultancy should be able to work with your counsel to bridge the gap in general law practice and telecom specific practice. If your technical staff is gung-ho to do switch selection with little guidance from the consultant or with total guidance from the consultant, both avenues should be able to be accommodated. Training on running your CLEC arm through the sales of unfamiliar products to your current product line should be available at a reasonable cost. Outside vendors for billing, customer service, SS7, back office, directory assistance, and operator services should be recommended and client suggestions should be willingly investigated by your consultant. Switchless Reseller’s do not require all of the elements below, whereas a Facility Based CLEC will. Many ISP’s have a limited number of these personnel already on staff, so minor augmentation of their current staff is all that will be required of them. Additionally, some business plans for data-only CLECs could actually skip a few of these items without major concern in a start-up situation.
There are many different and new categories that every ISP/CLEC needs to consider in becoming a telco. Before frustration sets in, remember, most of these functions can be outsourced or even contracted through the ILEC with whom you are interconnected. E911 is noticeably absent from this list as it is generally part of your interconnection agreement. All of the following can be co-ordinated by the staff at ISG-Telecom through its partnerships with industry leaders and 3rd party vendors. ISG-Telecom also has national contracts for many of these services and offers it's clients the opportunity to piggy-back those contracts for additional cost savings.
Business Office
Sales
Training
Marketing
Sales and Trunking Forecasts
Service Order Handling
Collections
Billing Resolution
Expansion and Service Area Plans
Accounting Office
Billing and local Telecommunications taxation by community of service
Affiliate Billing (Long Distance, Conference Calling, Calling Cards, Internet, Cellular, Paging, etc.)
Carrier Reconciliation’s
Billing Disputes Resolution
Fraud Resolution
Credit Issues
Business Customer Service Center
Centrex Customer Interface
Complex Order Processing
Customer Advocate
Special Service Circuits
Private Line Service and Installation
Equipment Provisioning
Equipment Assignment (Hardware)
Equipment Assignment (Software)
Customer Records
Circuit Records
Interconnection Trunking Forecasts and provisioning
Service Activation
Install and Test Line Cards (Data & Voice)
Assignments (OE, DN, Cross-connect, Cable)
Service Order Activation (Lines)
Cross-connect MDF Line Card Appearance to the Customer Appearance
Distribute Customer Premise Equipment (CPE) to the End User
Network Administration
Traffic Controls
Traffic Monitoring
Traffic Management
Network Data
Data Maintenance Center
LAN/WAN
Internet Connectivity and Routing
Administration Maintenance
Workstation Set-up and Support
Network Engineering
Maintenance (Switching / Transport / Access)
Work Force Administration
Repair Center Personnel
Network & Network Element Analysis
Network & Network Element Surveillance
Alarm Surveillance
Central Office Work
Network Performance
Network Element Performance
Tier II Support
Tier III Support
NMC Link Administration & Maintenance
Switch Software Administration / Patch Application
Switch Translations Maintenance
Switch Hardware Baseline / Updates
Switch Hardware Repair & Return
STP / SCP
Signaling Link Maintenance
Signaling Traffic Analysis
Repair Service Bureau
Test Desk
Trouble Ticket Creation
Trouble Ticket Tracking
Trouble Ticket Referral
Trouble Ticket Closure
Modem Repair & Return Front-end Logistics
Monthly Reports
Assignment Records
Disaster Recovery
Contingency Strategy
Contingency Plans
Operator Services
0- dialing
Directory Assistance
0-11-
Credit Card Billing
Local and/or National Directory Assistance inquiries
Direct Connect Features
Security
Line Traps
Call traces
Fraud Detection
Building Security
Switch Security
NMC Link Security
Facility (beyond points of demarcation)
Planning
Engineering
Line Crew
Installation & Repair
Cable Repair
Conclusion
While getting into a new line of business always requires changes to be made, becoming an operating CLEC is not as easy as setting up an Internet Service Provider (ISP) due to the regulatory considerations and complexity of meeting telephony standards. Because people take telephony service for granted, outages and outstanding service must be givens to any business plans. The two things an ISP needs who is looking to make the transition are: a full service consultant and a full service switch vendor. Moving to a lower priced switch vendor can be acceptable if your staff or new hires are particularly adept at learning the full range of capabilities in your new switch. As a switchless reseller, a full understanding of your reseller arrangement and the service standards established by your resellers agreement must be constantly monitored for performance. For either type of service, billing is the key to your success or lack of success and small start-ups are well advised to utilize an outside vendor with similar small clients while the start-up is in its infancy. This allows one of the most important functions to be run by proven outside resources while some of the service and installation issues are worked out in-house.
Coordination is key and having a coaching consultant is one of the best investments you can make during this process. This enables you to learn without being alone and gives you a fallback expert when even minor questions come up during or after the process. See the ISG-Telecom page for turnkey ISP/CLEC solutions at http://www.isg-telecom.com
Do I Qualify to become an ISP/CLEC?
Does My ISP Qualify to become an ISP/CLEC?
In this ever changing and evolving industry, ISP’s have to think about becoming ISP/CLEC’s. Many questions come to mind. Here are the answers to the most commonly asked questions, from the experts at ISG-Telecom Consultants:
Can I afford to become an ISP/CLEC?
If an ISP wants to maximize its revenues, save money and offer convergent services in order to stay competitive, it can not afford to remain as just an ISP with dial-up subscribers.
Will I remain or become more competitive by becoming an ISP/CLEC?
Most definitely you will become much more competitive.
Am I better off partnering with a CLEC instead of becoming an ISP/CLEC?
This depends completely on your long term goals, current subscriber base, and type of additional services to be offered and your current telco costs as an ISP. In order to get to market faster with these new services, partnering is definitely a viable option but for long-term growth and profits – becoming a CLEC is more advantageous.
What are the short-term benefits of becoming an ISP/CLEC?
The short-term benefits would be reduced costs to the ISP. The new CLEC entity would now service the ISP instead of the current ILEC.
What are the long-term benefits of becoming an ISP/CLEC?
The long-term benefits would include additional revenues as an ISP/CLEC, greater value of your entity (IPO, merger or acquisition). Many ISP/CLEC’s generate greater profit margins from the telco services vs. the ISP services.
Should I go the "Switchless Reseller" or the "Facility Based" route?
At ISG-Telecom we make this determination based strictly on $$$ saved. It is our objective to re-direct your current expenditures and put extra dollars straight to the bottom line. If we can save enough money to pay the switch lease then it pays to become a facility-based CLEC. The other determining factor would be the type of additional services to be offered by the ISP/CLEC…i.e. xDSL, LD, Local loop, VoIP, etc.
Can I afford NOT to become an ISP/CLEC?
Becoming an ISP/CLEC is not right for all ISP’s. It takes vision, dollars, marketing, etc. If you wish to stay competitive, and not pushed out of the market place – is should become a PRIORITY.
Do I currently spend enough $$ on telco services from the ILEC (my current provider) to warrant becoming a "Facility Based" CLEC?
This question is simple to answer – a tandem access switch (per LATA) will cost approximately 6K monthly on a lease basis. By becoming a facility based CLEC – your current costs will be reduced by approximately 80% so here is a formula to consider:
Current monthly costs - $20,000.00
Facility Based savings - $15,000.00
Switch lease - $ 6,000.00
Net savings monthly - $ 9,000.00 or $108,000.00 annually
As an ISP grows so does their telco costs. A good rule of thumb for facility based implementations are ISP’s that incur monthly telco costs of 20K or more and are in only one LATA.
What are the regulatory costs affiliated with becoming an ISP/CLEC?
As part of the ISG-Telecom "turn-key" solution, our filing fees are capped at $9,500 (per state-CLEC only) for the regulatory work (Phase I). This includes strategies, state certification application and filing, tariff drafting and filing, interconnection agreements/resale agreements and trunking/bandwidth solutions. MOST STATES HOWEVER AVERAGE UNDER 5K!
What are the additional equipment needs that I must undertake as a Facility Based ISP/CLEC?
This depends on the types of services to be offered but the minimum equipment necessary to become a profitable ISP/CLEC is a Tandem Access Switch. ISG-Telecom currently partners with the industry’s top manufacturers to provide the best possible equipment solutions.
See additional info at: www.isg-telecom.com/strategi.htm
Do I really need a tandem access switch?
In order to maximize your savings and profits a Tandem Access Switch is mandatory. Also consider the alternative or additional equipment such a VoIP gateways and DSLAM’s.
What are the savings affiliated with becoming a "Switchless Reseller" ISP/CLEC?
These savings will vary depending on the state as well as the ILEC. Typically they range from 14-25%.
What are the savings affiliated with becoming a "Facility Based" ISP/CLEC?
These savings also vary depending on the interconnection agreement, the state and the ILEC but are typically greater because as a Facility Based CLEC, the interconnecting ILEC/CLEC has to provide all inbound trunks from their closest CO to your switch at NO cost. NOTE: You will have some trunking costs but you can expect savings greater than 50% on your internal costs and typical revenues of 30% on telco services sold to end users.
What are the additional revenue streams that I can generate for my business as an ISP/CLEC?
These are far too great to mention here. Initially, if you are selling dedicated services to your clients (i.e. ISDN, PRI, T-1’s, Frame Relay, etc.) you currently make ZERO dollars on those trunk lines & services. Please contact ISG-Telecom at articles@isg-telecom.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it for a copy of "Revenue Streams for the ISP/CLEC".
Will the new revenue streams outweigh the costs of becoming an ISP/CLEC?
In a single word – YES they will, providing your current telco costs make it financially feasible. Fill out the questionaire at: www.isg-telecom.com/question.htm for an evaluation by one of the ISG-Telecom Consultant experts.
Will I have to colo at the ILEC’s CO in order to make money?
Not necessarily. Colo at the ILEC CO is expensive. Your tandem access switch can be in your facility depending on the distance you are from the CO. DSLAM’s for xDSL, on the other hand must be collocated at the CO.
What are the costs affiliated with colo?
These costs again vary depending on the CO and the ILEC. The good news is that the ISG-Telecom negotiators are some of the best in the industry.
How difficult is it to get an interconnect agreement? What are the costs and time frames involved? Should I opt-in or negotiate a new agreement?
Getting an interconnection agreement with the help of the ISG-Telecom experts is NOT difficult at all. ISG-Telecom experts currently work on interconnection agreements with every major ILEC in the USA. Depending on whether we can "opt-in" (our preference) or negotiate a new agreement will have a major bearing on the final costs of obtaining an interconnection agreement. The other variable is how many interconnection agreements are necessary in order to meet the goals and service areas of the new ISP/CLEC. Sometimes interconnecting with another CLEC can prove more beneficial and more than one interconnection agreement is NEVER out of the question. For additional information on the costs affiliated with interconnection agreements, please email Mr. Isaacs @ isaacs@isg-telecom.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it Mr. Isaacs has done over 2,000 agreements with ILEC's across the country since 1996.
How difficult is it to get a resale agreement?
Once again, this is NOT a difficult process for the ISG-Telecom staff. The rates are all defined in the ILEC/CLEC tariff but they do vary depending on the ILEC and the state.
What is the time frame from start to finish?
Typically speaking, the staff at ISG-Telecom can complete the entire CLEC process in 120 days. The approval timeframes at the state PUC’s vary from 1 day to 6 months. Please refer to: www.isg-telecom.com/puc.htm for the approval timeframe for your particular state.
How long will my certification process take?
Please refer to the above answer. It will take ISG-Telecom 1-3 weeks, from the time we are contracted and receive all necessary data from the client to prepare the certification application, draft the tariffs for client approval and complete the interconnection agreements.
How long does it take to have telco grade CO equipment installed (class 4/class 5 switches)?
Typically speaking it will take between 8-12 weeks to have a switch installed and turned-up. It is for this reason that we work on the switch selection concurrently with the certification process. The goal is to have the switch deployed and beta tested concurrently with the certification approval.
Should I lease or purchase the switch?
This depends on how deep the pockets are of the ISP. Usually we recommend that you lease the equipment for a period of between 48-60 months because it is more economically feasible. ISG-Telecom, through its strategic partners, offers numerous leasing programs to meet the needs of all of its ISP/CLEC clients.
How many additional people do I need to add to my staff if I become a Facility-Based CLEC?
A small Tandem Access switch can usually be run by one additional engineer. Most of the ISG-Telecom strategic partners also offer switch management for a fee. Training on the switch management is always included in the switch quote (and subsequent lease).
What type of switch, sales & marketing and product training will I need, and at what cost?
As a new ISP/CLEC there will be additional training necessary for many of your current staff members. ISG-Telecom offers over 40 different training courses to meet the specific needs of all clients.
See www.isg-telecom.com/training.htm for additional details on our training programs.
Which equipment vendors should I look towards for help?
As part of our ongoing effort to stay up on technology and provide the best solutions to our clients we have teamed up with the top industry players. Please see www.isg-telecom.com/strategi.htm for additional details on manufacturer partners.
Can I reduce/consolidate the numbers or POPs I currently have and set-up Virtual NXX’s for greater coverage?
As a "Facility-Based" CLEC you can co-locate your POPS in one central facility right next to your Tandem Access Switch. By utilizing virtual NXX’s you will have the ability to expand your coverage to the entire LATA and have local numbers for not only your current dial-up subscribers but also for new ones.
What about numbering resources?
As a Facility-Based CLEC you will have the ability to apply for an initial bank of NPP-NXX’s (usually 1,000) from www.nationalpooling.com ISG can assist all clients with getting NPA-NXX's, the myriad of Neustar, NECA, NANPA, NRUF, etc.
What about number portability?
This is an issue that can be easily resolved as well. No need for changing access numbers.
Should I consider becoming an IXC as well?
This depends on whether you plan on doing InterLATA or Interstate traffic. Long distance traffic is extremely profitable. We will also need to consider VoIP in order to determine the need for Interexchange status. ISG-Telecom has the ability to handle the IXC (State & Federal) implementation on a turn-key basis as well. With VoIP taking over it is highly recomended that all cariers register with the FCC as an intrastate provider.
Can I offer services like xDSL or VoIP?
Yes you can but additional equipment will be necessary.
Do I really need a consulting firm to help me through the ISP/CLEC process?
It is always recommended to hire an expert when a company is attempting to move into a new field with limited expertise. A good consulting firm, like ISG-Telecom does not have the learning curve….since it’s primary focus is the ISP/CLEC market. The ISG-Telecom experts understand both the ISP business model as well as the ISP/CLEC business model. We are not just consultants, we are your regulatory arm throughout and subsequent to the process of going down this path.
What are the advantages of hiring a consulting firm to walk me through the process?
The primary advantage to hiring a consulting firm like ISG-Telecom is the vast knowledge and expertise that they bring to the table. The ISG-Telecom contacts with the ILECs, RBOC’s and CLEC’s nationwide make the interconnection process run smoothly. The ISG-Telecom regulatory staff is perpetually staying on top of the regulatory environment on both a state and federal level, making your filing go more efficiently. Additionally, EVERY client taken on by ISG-Telecom over the past 3 years has been certified – NO ONE has been denied certification. Additionally, most ISP staff are currently over burdened with current responsibilities. The ISG-Telecom staff allows you to run and grow your ISP while we work diligently in the background to create you as an ISP/CLEC.
What are the disadvantages of hiring a consulting firm to walk me through the process?
The only disadvantages would be the cost but the advantages outweigh the minimal costs affiliated with becoming an ISP/CLEC.
Should I hire a telecom attorney or a consulting firm?
There are many telecom attorney’s more than capable of handling the regulatory process. Unfortunately they look at your plan from strictly the legal aspect and not the business aspect. A consulting firm like ISG-Telecom offers much more than regulatory work but ISG-Telecom has and uses the top telecom attorney’s in the USA. Turn-Key solutions often save dollars in the long run.
What is the monthly re-occurring expenses as an ISP/CLEC?
The monthly expenses as an ISP/CLEC include billing, customer service and tax compliance. It is usually recommended than a new ISP/CLEC outsource these functions at least for the first year of operation. All of these functions can be brought in house after sufficient training.
What if I want to be a data ISP/CLEC only (DLEC)?
NO problem.
What if I only want to become an ISP/CLEC to offer xDSL?
NO problem. Let the experts at ISG-Telecom walk you though this process.
What should my total budget be for the ISP/CLEC process?
This will depend on the scope of the work and the number of states certification is required in. Please contact Mr. Isaacs at isaacs@isg-telecom.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it to discuss all of the costs and budgetary figures.
What does it take to get started on the ISP/CLEC process?
Contact Mr. Isaacs @ ISG-Telecom, ( isaacs@isg-telecom.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) or call at 727-738-5553 - discuss your plans, have your opportunities evaluated, request the ISG-Telecom Master Consulting Agreement, fill out the ISG-Telecom ISP/CLEC questionaire and get started TODAY!
In this ever changing and evolving industry, ISP’s have to think about becoming ISP/CLEC’s. Many questions come to mind. Here are the answers to the most commonly asked questions, from the experts at ISG-Telecom Consultants:
Can I afford to become an ISP/CLEC?
If an ISP wants to maximize its revenues, save money and offer convergent services in order to stay competitive, it can not afford to remain as just an ISP with dial-up subscribers.
Will I remain or become more competitive by becoming an ISP/CLEC?
Most definitely you will become much more competitive.
Am I better off partnering with a CLEC instead of becoming an ISP/CLEC?
This depends completely on your long term goals, current subscriber base, and type of additional services to be offered and your current telco costs as an ISP. In order to get to market faster with these new services, partnering is definitely a viable option but for long-term growth and profits – becoming a CLEC is more advantageous.
What are the short-term benefits of becoming an ISP/CLEC?
The short-term benefits would be reduced costs to the ISP. The new CLEC entity would now service the ISP instead of the current ILEC.
What are the long-term benefits of becoming an ISP/CLEC?
The long-term benefits would include additional revenues as an ISP/CLEC, greater value of your entity (IPO, merger or acquisition). Many ISP/CLEC’s generate greater profit margins from the telco services vs. the ISP services.
Should I go the "Switchless Reseller" or the "Facility Based" route?
At ISG-Telecom we make this determination based strictly on $$$ saved. It is our objective to re-direct your current expenditures and put extra dollars straight to the bottom line. If we can save enough money to pay the switch lease then it pays to become a facility-based CLEC. The other determining factor would be the type of additional services to be offered by the ISP/CLEC…i.e. xDSL, LD, Local loop, VoIP, etc.
Can I afford NOT to become an ISP/CLEC?
Becoming an ISP/CLEC is not right for all ISP’s. It takes vision, dollars, marketing, etc. If you wish to stay competitive, and not pushed out of the market place – is should become a PRIORITY.
Do I currently spend enough $$ on telco services from the ILEC (my current provider) to warrant becoming a "Facility Based" CLEC?
This question is simple to answer – a tandem access switch (per LATA) will cost approximately 6K monthly on a lease basis. By becoming a facility based CLEC – your current costs will be reduced by approximately 80% so here is a formula to consider:
Current monthly costs - $20,000.00
Facility Based savings - $15,000.00
Switch lease - $ 6,000.00
Net savings monthly - $ 9,000.00 or $108,000.00 annually
As an ISP grows so does their telco costs. A good rule of thumb for facility based implementations are ISP’s that incur monthly telco costs of 20K or more and are in only one LATA.
What are the regulatory costs affiliated with becoming an ISP/CLEC?
As part of the ISG-Telecom "turn-key" solution, our filing fees are capped at $9,500 (per state-CLEC only) for the regulatory work (Phase I). This includes strategies, state certification application and filing, tariff drafting and filing, interconnection agreements/resale agreements and trunking/bandwidth solutions. MOST STATES HOWEVER AVERAGE UNDER 5K!
What are the additional equipment needs that I must undertake as a Facility Based ISP/CLEC?
This depends on the types of services to be offered but the minimum equipment necessary to become a profitable ISP/CLEC is a Tandem Access Switch. ISG-Telecom currently partners with the industry’s top manufacturers to provide the best possible equipment solutions.
See additional info at: www.isg-telecom.com/strategi.htm
Do I really need a tandem access switch?
In order to maximize your savings and profits a Tandem Access Switch is mandatory. Also consider the alternative or additional equipment such a VoIP gateways and DSLAM’s.
What are the savings affiliated with becoming a "Switchless Reseller" ISP/CLEC?
These savings will vary depending on the state as well as the ILEC. Typically they range from 14-25%.
What are the savings affiliated with becoming a "Facility Based" ISP/CLEC?
These savings also vary depending on the interconnection agreement, the state and the ILEC but are typically greater because as a Facility Based CLEC, the interconnecting ILEC/CLEC has to provide all inbound trunks from their closest CO to your switch at NO cost. NOTE: You will have some trunking costs but you can expect savings greater than 50% on your internal costs and typical revenues of 30% on telco services sold to end users.
What are the additional revenue streams that I can generate for my business as an ISP/CLEC?
These are far too great to mention here. Initially, if you are selling dedicated services to your clients (i.e. ISDN, PRI, T-1’s, Frame Relay, etc.) you currently make ZERO dollars on those trunk lines & services. Please contact ISG-Telecom at articles@isg-telecom.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it for a copy of "Revenue Streams for the ISP/CLEC".
Will the new revenue streams outweigh the costs of becoming an ISP/CLEC?
In a single word – YES they will, providing your current telco costs make it financially feasible. Fill out the questionaire at: www.isg-telecom.com/question.htm for an evaluation by one of the ISG-Telecom Consultant experts.
Will I have to colo at the ILEC’s CO in order to make money?
Not necessarily. Colo at the ILEC CO is expensive. Your tandem access switch can be in your facility depending on the distance you are from the CO. DSLAM’s for xDSL, on the other hand must be collocated at the CO.
What are the costs affiliated with colo?
These costs again vary depending on the CO and the ILEC. The good news is that the ISG-Telecom negotiators are some of the best in the industry.
How difficult is it to get an interconnect agreement? What are the costs and time frames involved? Should I opt-in or negotiate a new agreement?
Getting an interconnection agreement with the help of the ISG-Telecom experts is NOT difficult at all. ISG-Telecom experts currently work on interconnection agreements with every major ILEC in the USA. Depending on whether we can "opt-in" (our preference) or negotiate a new agreement will have a major bearing on the final costs of obtaining an interconnection agreement. The other variable is how many interconnection agreements are necessary in order to meet the goals and service areas of the new ISP/CLEC. Sometimes interconnecting with another CLEC can prove more beneficial and more than one interconnection agreement is NEVER out of the question. For additional information on the costs affiliated with interconnection agreements, please email Mr. Isaacs @ isaacs@isg-telecom.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it Mr. Isaacs has done over 2,000 agreements with ILEC's across the country since 1996.
How difficult is it to get a resale agreement?
Once again, this is NOT a difficult process for the ISG-Telecom staff. The rates are all defined in the ILEC/CLEC tariff but they do vary depending on the ILEC and the state.
What is the time frame from start to finish?
Typically speaking, the staff at ISG-Telecom can complete the entire CLEC process in 120 days. The approval timeframes at the state PUC’s vary from 1 day to 6 months. Please refer to: www.isg-telecom.com/puc.htm for the approval timeframe for your particular state.
How long will my certification process take?
Please refer to the above answer. It will take ISG-Telecom 1-3 weeks, from the time we are contracted and receive all necessary data from the client to prepare the certification application, draft the tariffs for client approval and complete the interconnection agreements.
How long does it take to have telco grade CO equipment installed (class 4/class 5 switches)?
Typically speaking it will take between 8-12 weeks to have a switch installed and turned-up. It is for this reason that we work on the switch selection concurrently with the certification process. The goal is to have the switch deployed and beta tested concurrently with the certification approval.
Should I lease or purchase the switch?
This depends on how deep the pockets are of the ISP. Usually we recommend that you lease the equipment for a period of between 48-60 months because it is more economically feasible. ISG-Telecom, through its strategic partners, offers numerous leasing programs to meet the needs of all of its ISP/CLEC clients.
How many additional people do I need to add to my staff if I become a Facility-Based CLEC?
A small Tandem Access switch can usually be run by one additional engineer. Most of the ISG-Telecom strategic partners also offer switch management for a fee. Training on the switch management is always included in the switch quote (and subsequent lease).
What type of switch, sales & marketing and product training will I need, and at what cost?
As a new ISP/CLEC there will be additional training necessary for many of your current staff members. ISG-Telecom offers over 40 different training courses to meet the specific needs of all clients.
See www.isg-telecom.com/training.htm for additional details on our training programs.
Which equipment vendors should I look towards for help?
As part of our ongoing effort to stay up on technology and provide the best solutions to our clients we have teamed up with the top industry players. Please see www.isg-telecom.com/strategi.htm for additional details on manufacturer partners.
Can I reduce/consolidate the numbers or POPs I currently have and set-up Virtual NXX’s for greater coverage?
As a "Facility-Based" CLEC you can co-locate your POPS in one central facility right next to your Tandem Access Switch. By utilizing virtual NXX’s you will have the ability to expand your coverage to the entire LATA and have local numbers for not only your current dial-up subscribers but also for new ones.
What about numbering resources?
As a Facility-Based CLEC you will have the ability to apply for an initial bank of NPP-NXX’s (usually 1,000) from www.nationalpooling.com ISG can assist all clients with getting NPA-NXX's, the myriad of Neustar, NECA, NANPA, NRUF, etc.
What about number portability?
This is an issue that can be easily resolved as well. No need for changing access numbers.
Should I consider becoming an IXC as well?
This depends on whether you plan on doing InterLATA or Interstate traffic. Long distance traffic is extremely profitable. We will also need to consider VoIP in order to determine the need for Interexchange status. ISG-Telecom has the ability to handle the IXC (State & Federal) implementation on a turn-key basis as well. With VoIP taking over it is highly recomended that all cariers register with the FCC as an intrastate provider.
Can I offer services like xDSL or VoIP?
Yes you can but additional equipment will be necessary.
Do I really need a consulting firm to help me through the ISP/CLEC process?
It is always recommended to hire an expert when a company is attempting to move into a new field with limited expertise. A good consulting firm, like ISG-Telecom does not have the learning curve….since it’s primary focus is the ISP/CLEC market. The ISG-Telecom experts understand both the ISP business model as well as the ISP/CLEC business model. We are not just consultants, we are your regulatory arm throughout and subsequent to the process of going down this path.
What are the advantages of hiring a consulting firm to walk me through the process?
The primary advantage to hiring a consulting firm like ISG-Telecom is the vast knowledge and expertise that they bring to the table. The ISG-Telecom contacts with the ILECs, RBOC’s and CLEC’s nationwide make the interconnection process run smoothly. The ISG-Telecom regulatory staff is perpetually staying on top of the regulatory environment on both a state and federal level, making your filing go more efficiently. Additionally, EVERY client taken on by ISG-Telecom over the past 3 years has been certified – NO ONE has been denied certification. Additionally, most ISP staff are currently over burdened with current responsibilities. The ISG-Telecom staff allows you to run and grow your ISP while we work diligently in the background to create you as an ISP/CLEC.
What are the disadvantages of hiring a consulting firm to walk me through the process?
The only disadvantages would be the cost but the advantages outweigh the minimal costs affiliated with becoming an ISP/CLEC.
Should I hire a telecom attorney or a consulting firm?
There are many telecom attorney’s more than capable of handling the regulatory process. Unfortunately they look at your plan from strictly the legal aspect and not the business aspect. A consulting firm like ISG-Telecom offers much more than regulatory work but ISG-Telecom has and uses the top telecom attorney’s in the USA. Turn-Key solutions often save dollars in the long run.
What is the monthly re-occurring expenses as an ISP/CLEC?
The monthly expenses as an ISP/CLEC include billing, customer service and tax compliance. It is usually recommended than a new ISP/CLEC outsource these functions at least for the first year of operation. All of these functions can be brought in house after sufficient training.
What if I want to be a data ISP/CLEC only (DLEC)?
NO problem.
What if I only want to become an ISP/CLEC to offer xDSL?
NO problem. Let the experts at ISG-Telecom walk you though this process.
What should my total budget be for the ISP/CLEC process?
This will depend on the scope of the work and the number of states certification is required in. Please contact Mr. Isaacs at isaacs@isg-telecom.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it to discuss all of the costs and budgetary figures.
What does it take to get started on the ISP/CLEC process?
Contact Mr. Isaacs @ ISG-Telecom, ( isaacs@isg-telecom.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) or call at 727-738-5553 - discuss your plans, have your opportunities evaluated, request the ISG-Telecom Master Consulting Agreement, fill out the ISG-Telecom ISP/CLEC questionaire and get started TODAY!
"Taking the Plunge" from ISP to ISP/CLEC
"Taking the Plunge" from ISP to ISP/CLEC
ISPs have made substantial leaps forward in becoming the "Next-Generation" telecom companies in the USA. Just as ISP’s are jumping into the telecom business, the local telephone companies are moving into the ISP business. Incumbent Local Exchange Carriers (ILECs) and Competitive Local Exchange Carriers (CLECs) have aggressively begun pursuing the Internet business as an addition to their existing telephone company services. Local telephone companies currently control most of the lines, which are required to reach end-user Internet customers. They can act not only as the suppliers of lines to ISPs, but by installing remote Internet access equipment in their existing central offices, they are able to provide Internet services.
Why should an ISP "TAKE THE PLUNGE" and file to become a CLEC? Here are a few of the reasons:
1. State by State mandated 13 to 19 percent below-tariff wholesale rates on circuits and services for switchless reseller CLECs;
2. Greater discounts of 20 to 45 percent below-tariff wholesale rates on circuits and services for facility-based CLECs;
3. Reciprocal Compensation at least until the FCC makes a ruling in this area;
4. Availability of carrier class services (UNE's) unavailable at retail levels;
5. Most importantly, the ability to profit from the telecom services used by your existing customer base and community;
6. Ability to be a "Peer" to the ILEC instead of just a customer.
Becoming a ISP/CLEC can lead to major cost savings as well as many potential new revenue streams for ISPs that are currently paying retail tariff prices on circuits provided by the ILECs and/or CLECs.
The Telecommunications Act of 1996 requires that the ILECs and other CLECs open their markets to competition. State Public Service Commissions are charged with regulating new CLECs under the Telco Act of '96.
In today’s competitive environment, an ISP desiring to interconnect with an ILEC and/or CLEC must do the following to become certified as a CLEC:
1. File an application with their State Public Service Commission;
2. File retail tariffs; and
3. Negotiate an interconnection agreement(s) with the ILEC and/or the CLEC's.
If the ISP is only offering intrastate services, the ISP needs to only apply for CLEC certification at the state level. However, if the ISP wishes to offer Interstate or InterLATA services, the ISP must also become certified as an IXC carrier with the Federal Communications Commission (FCC) as well by doing the following:
1. Filing an application with the Federal Communications Commission (FCC);
2. Filing tariffs with the Federal Communications Commission (FCC); and
3. Filing a copy of the FCC tariff with every State PUC that you wish to offer service in.
Although it is not mandatory, ISG-Telecom highly recommends, that the first thing an ISP needs to do to become a CLEC is to create a separate company, which can be owned by the same shareholders as the Internet company. It is important not to co-mingle the activities as well as revenues of the unregulated ISP business with the regulated CLEC entity. Once the CLEC entity is established, the ISP/CLEC, through ISG-Telecom will file with its State Public Utility Commission (PUC) and/or the FCC. This approval process can usually be accomplished by ISG-Telecom in as little as 120 days from date of filing. It will take ISG-Telecom between 30-45 days to prepare all necessary documentation to send to the PUC and the FCC, if necessary. The approval timetables vary, at the PUC level from State to State. These approval timetables range anywhere from one (1) day to six (6) months. See the PUC Timetables for your State
Simultaneously to the certification and tariffing process, ISG-Telecom must now either negotiate (or in many cases opt-in to) an Interconnection Agreement with the ILEC and/or CLEC whose services it intends to purchase, and whose LATA it plans to do business in. The Interconnection Agreement must include agreed upon loop and circuit rates as well as other interconnection points, rates and processes. Several thousands of these agreements have been negotiated and approved by State Public Utility Commissions since the passage of the Telecom Act of '96.
The Interconnect Agreement will also reflect the type of interconnection with the following elements:
1. How to connect the networks;
2. Where to connect to the networks;
3. Unbundled Network Element (UNE's) pricing and/or resale;
4. The quality of service elements;
5. The agreed-on reciprocal compensation rate for terminating traffic,
6. Issues including penalties for non-performance on the part of either the interconnecting ILEC and/or the CLEC.
7. Implementation schedules and manuals
Some ISPs, at least initially, will probably want to become switchless resellers rather than purchasing their own switching equipment (facility based reseller) and Unbundled Network Elements (UNE’s) from the local telephone company network. If the ISP/CLEC switchless reseller plans on adding its own switching equipment within a twelve month period, ISG-Telecom usually recommends that the certification application and tariffs reflect this, which can eliminate having to re-draft tariffs and certification papers within such a short period of time from the initial filing. It may be necessary to expand the flexibility of the interconnection agreement to take into consideration the Unbundled Network Elements (UNE’s). If the new ISP/CLEC does not have sufficient current costs to justify becoming a facility based CLEC, then ISG-Telecom will recommend beginning as a switchless reseller. It is our objective to redistribute current costs vs. increasing them. When enough savings are realized by implementing a switch, then it becomes cost justified to do so. This philosophy does not take into consideration the additional revenue streams generated, in addition to, the current revenues.
Plunging towards becoming an ISP/CLEC is very beneficial because it allows the Switchless Reseller ISP/CLEC, under it’s Resale Agreement to obtain discounts on the lines purchased by the CLEC. Much greater discounts would be obtained as a facility based ISP/CLEC or by entering into a term and volume agreement with the ILECs and/or CLECs. In a facility based environment, the ISP/CLEC also has the opportunity to receive all of their inbound trunks, to the Tandem Access Switch, at no cost from the ILEC and/or CLEC. A savings of 13 to 19 percent across the board (these discounts may be higher if ISG-Telecom negotiates a term and volume agreement on behalf of the client), under a negotiated agreement or by the use of switching facilities. This puts the ISP/CLEC in a much more competitive position within its markets. The savings on local loop lines can translate into either higher profits and/or lower price, both of which are key ingredients for a growing ISP/CLEC organization.
Additionally, the new ISP/CLEC will have to consider the set-up and implementation of full Back Office functions including:
1. Billing
2. Customer Service
3. Operator Services
4. Directory Assistance
5. 911
6. SS7
7. Tax Compliance
8. Tax Software
Back office functions should not scare you away from moving towards becoming an ISP/CLEC. Most of these functions can be set-up on an outsourced basis and performed by 3rd party vendors with reasonable and cost effective methodology. Depending on the service offering, and the convergence of products, the cost of set-up and implementation will vary. ISG-Telecom offers a wide array of 3rd party vendors for these functions based upon the goals and objectives of the individual clients. Some of these functions are an expense (billing & customer service) and some of them are an additional revenue stream (operator services & directory assistance). Flat rate service models are simple to bill but MOU billing can be extremely complex and more expensive to set-up. Long distance services are the most complex to bill and should always be done by a 3rd party vendor for at least the first 12 months of operation.
Furthermore, as a facility based CLEC, the ISP/CLEC should be able to participate in reciprocal compensation with the carriers, providing there is not a negative ruling from the FCC in up and coming months. Reciprocal compensation is the term used to describe the fees that interconnecting local carriers pay to terminate traffic on each other's network. As an example, where the ISP/CLEC and the interconnecting ILEC and/or CLEC have an interconnection agreement, both the ISP/CLEC and the interconnecting ILEC and/or CLEC must pay each other for the amount of local traffic (per minute) that each carrier terminates on each other's network. The payments for reciprocal compensation vary from ILEC to ILEC but are typically between 0.2 and 1.04 cents per minute. Although reciprocal compensation could be a new revenue source for the ISP/CLEC, we at ISG-Telecom NEVER recommend creating a business plan or business case model around reciprocal compensation. ISP/CLECs that choose to become CLECs to participate in reciprocal compensation should be aware of the current regulatory climate. Reciprocal compensation, in light of recent FCC considerations, should be considered "gravy" income ONLY.
Many ILECs have claimed, and fought, that reciprocal compensation for ISP-related traffic is not due, to the ISP/CLEC, under the existing FCC and state rules. These ILECs do not consider that the typically one way traffic, generally created by an ISP, to be reciprocal and thus are fighting the reciprocal compensation payments for ISP traffic. The ILECs also claim that reciprocal compensation is meant only for local calls, not calls to ISPs, which they claim, are interstate in nature. There has not been a current ruling from the FCC on this issue yet, but is expected sometime in 1999. These ILECs have withheld payments to CLECs who serve ISPs, who the ILECs believe are accumulating large amounts of ISP traffic for the purposes of collecting reciprocal compensation payments. In over 20 challenges to State PUCs, the reciprocal compensation payments for ISP traffic has been upheld as both local in nature and subject to the payment of reciprocal compensation on those states. In other words, the ILECs have lost every case, with the State PUCs, in which it has challenged the payment of reciprocal compensation. The FCC and numerous states are currently addressing this issue, which likely will be resolved, as part of total access reform and/or new internet service regulatory actions. It is most likely that reciprocal compensation will be re-formulated, with a lower percentage payment for ISP traffic and a higher percentage payment for conventional true voice traffic, within the next 12 months.
Other advantages in becoming an ISP/CLEC, besides obtaining discounts on lines and advantageous reciprocal compensation arrangements, is that by becoming a CLEC enables the ISP/CLEC to operate as a "PEER" to the ILEC, which creates a virtual level playing field. As opposed to the end-user retail customer status, an ISP/ CLEC can obtain a whole new group of negotiation rights, including quality of service, good faith negotiation, and regulatory protections/enforcement mechanisms.
Another advantages to becoming a facility-based CLEC is the opportunity to profit from long distance calls. Termination and origination fees may be collected and usually average between 0.017 and 0.03 per minute. These collected fees will outweighs the reciprocal compensation fees. Switching equipment is more expensive but the revenues can overcome the costs. In today's market environment, convergent services are taking the lead, as the #1 reason for customer retention, instead of price, as it was just a few years ago. Churning can be virtually eliminated by offering your customer base a package that is all inclusive of both internet and telephony services.
Looking at the ISP/CLEC arena from the bigger perspective, the direction of the ISP and telecom industry suggests that an ISPs who want to remain competitive must take a serious look at becoming an ISP/CLEC. With the telecom industry moving towards convergence models where voice, video and data will travel the same fiber optic lines into end-user homes, becoming a ISP/CLEC will be a critical step for a current ISP to position itself competitively.
Today’s market environment leaves an ISP with only four (4) choices:
1. Become a CLEC
2. Partner with a CLEC
3. Be bought out or merge with another large ISP and/or CLEC
4. Be pushed out of business
ISP/CLECs who control their own destiny will be in a position to take advantage of new service offerings, such as VoIP and the ISP that is already a CLEC is better positioned, under current regulations, to enter into VoIP as just one of many other telco services available.
In conclusion, the telecom industry is rapidly evolving, and ISPs need to change with it if they are going to remain competitive. Therefore, ISPs should contact ISG-Telecom and "TAKE THE PLUNGE" by becoming an ISP/CLECs. To find out if your ISP qualifies to become an ISP/CLEC fill out the by becoming an ISP/CLECs. To find out if your ISP qualifies to become an ISP/CLEC fill out the ISG-Telecom ISP/CLEC Questionaire and fax it back to us for immediate review and a NO COST initial analysis.
ISPs have made substantial leaps forward in becoming the "Next-Generation" telecom companies in the USA. Just as ISP’s are jumping into the telecom business, the local telephone companies are moving into the ISP business. Incumbent Local Exchange Carriers (ILECs) and Competitive Local Exchange Carriers (CLECs) have aggressively begun pursuing the Internet business as an addition to their existing telephone company services. Local telephone companies currently control most of the lines, which are required to reach end-user Internet customers. They can act not only as the suppliers of lines to ISPs, but by installing remote Internet access equipment in their existing central offices, they are able to provide Internet services.
Why should an ISP "TAKE THE PLUNGE" and file to become a CLEC? Here are a few of the reasons:
1. State by State mandated 13 to 19 percent below-tariff wholesale rates on circuits and services for switchless reseller CLECs;
2. Greater discounts of 20 to 45 percent below-tariff wholesale rates on circuits and services for facility-based CLECs;
3. Reciprocal Compensation at least until the FCC makes a ruling in this area;
4. Availability of carrier class services (UNE's) unavailable at retail levels;
5. Most importantly, the ability to profit from the telecom services used by your existing customer base and community;
6. Ability to be a "Peer" to the ILEC instead of just a customer.
Becoming a ISP/CLEC can lead to major cost savings as well as many potential new revenue streams for ISPs that are currently paying retail tariff prices on circuits provided by the ILECs and/or CLECs.
The Telecommunications Act of 1996 requires that the ILECs and other CLECs open their markets to competition. State Public Service Commissions are charged with regulating new CLECs under the Telco Act of '96.
In today’s competitive environment, an ISP desiring to interconnect with an ILEC and/or CLEC must do the following to become certified as a CLEC:
1. File an application with their State Public Service Commission;
2. File retail tariffs; and
3. Negotiate an interconnection agreement(s) with the ILEC and/or the CLEC's.
If the ISP is only offering intrastate services, the ISP needs to only apply for CLEC certification at the state level. However, if the ISP wishes to offer Interstate or InterLATA services, the ISP must also become certified as an IXC carrier with the Federal Communications Commission (FCC) as well by doing the following:
1. Filing an application with the Federal Communications Commission (FCC);
2. Filing tariffs with the Federal Communications Commission (FCC); and
3. Filing a copy of the FCC tariff with every State PUC that you wish to offer service in.
Although it is not mandatory, ISG-Telecom highly recommends, that the first thing an ISP needs to do to become a CLEC is to create a separate company, which can be owned by the same shareholders as the Internet company. It is important not to co-mingle the activities as well as revenues of the unregulated ISP business with the regulated CLEC entity. Once the CLEC entity is established, the ISP/CLEC, through ISG-Telecom will file with its State Public Utility Commission (PUC) and/or the FCC. This approval process can usually be accomplished by ISG-Telecom in as little as 120 days from date of filing. It will take ISG-Telecom between 30-45 days to prepare all necessary documentation to send to the PUC and the FCC, if necessary. The approval timetables vary, at the PUC level from State to State. These approval timetables range anywhere from one (1) day to six (6) months. See the PUC Timetables for your State
Simultaneously to the certification and tariffing process, ISG-Telecom must now either negotiate (or in many cases opt-in to) an Interconnection Agreement with the ILEC and/or CLEC whose services it intends to purchase, and whose LATA it plans to do business in. The Interconnection Agreement must include agreed upon loop and circuit rates as well as other interconnection points, rates and processes. Several thousands of these agreements have been negotiated and approved by State Public Utility Commissions since the passage of the Telecom Act of '96.
The Interconnect Agreement will also reflect the type of interconnection with the following elements:
1. How to connect the networks;
2. Where to connect to the networks;
3. Unbundled Network Element (UNE's) pricing and/or resale;
4. The quality of service elements;
5. The agreed-on reciprocal compensation rate for terminating traffic,
6. Issues including penalties for non-performance on the part of either the interconnecting ILEC and/or the CLEC.
7. Implementation schedules and manuals
Some ISPs, at least initially, will probably want to become switchless resellers rather than purchasing their own switching equipment (facility based reseller) and Unbundled Network Elements (UNE’s) from the local telephone company network. If the ISP/CLEC switchless reseller plans on adding its own switching equipment within a twelve month period, ISG-Telecom usually recommends that the certification application and tariffs reflect this, which can eliminate having to re-draft tariffs and certification papers within such a short period of time from the initial filing. It may be necessary to expand the flexibility of the interconnection agreement to take into consideration the Unbundled Network Elements (UNE’s). If the new ISP/CLEC does not have sufficient current costs to justify becoming a facility based CLEC, then ISG-Telecom will recommend beginning as a switchless reseller. It is our objective to redistribute current costs vs. increasing them. When enough savings are realized by implementing a switch, then it becomes cost justified to do so. This philosophy does not take into consideration the additional revenue streams generated, in addition to, the current revenues.
Plunging towards becoming an ISP/CLEC is very beneficial because it allows the Switchless Reseller ISP/CLEC, under it’s Resale Agreement to obtain discounts on the lines purchased by the CLEC. Much greater discounts would be obtained as a facility based ISP/CLEC or by entering into a term and volume agreement with the ILECs and/or CLECs. In a facility based environment, the ISP/CLEC also has the opportunity to receive all of their inbound trunks, to the Tandem Access Switch, at no cost from the ILEC and/or CLEC. A savings of 13 to 19 percent across the board (these discounts may be higher if ISG-Telecom negotiates a term and volume agreement on behalf of the client), under a negotiated agreement or by the use of switching facilities. This puts the ISP/CLEC in a much more competitive position within its markets. The savings on local loop lines can translate into either higher profits and/or lower price, both of which are key ingredients for a growing ISP/CLEC organization.
Additionally, the new ISP/CLEC will have to consider the set-up and implementation of full Back Office functions including:
1. Billing
2. Customer Service
3. Operator Services
4. Directory Assistance
5. 911
6. SS7
7. Tax Compliance
8. Tax Software
Back office functions should not scare you away from moving towards becoming an ISP/CLEC. Most of these functions can be set-up on an outsourced basis and performed by 3rd party vendors with reasonable and cost effective methodology. Depending on the service offering, and the convergence of products, the cost of set-up and implementation will vary. ISG-Telecom offers a wide array of 3rd party vendors for these functions based upon the goals and objectives of the individual clients. Some of these functions are an expense (billing & customer service) and some of them are an additional revenue stream (operator services & directory assistance). Flat rate service models are simple to bill but MOU billing can be extremely complex and more expensive to set-up. Long distance services are the most complex to bill and should always be done by a 3rd party vendor for at least the first 12 months of operation.
Furthermore, as a facility based CLEC, the ISP/CLEC should be able to participate in reciprocal compensation with the carriers, providing there is not a negative ruling from the FCC in up and coming months. Reciprocal compensation is the term used to describe the fees that interconnecting local carriers pay to terminate traffic on each other's network. As an example, where the ISP/CLEC and the interconnecting ILEC and/or CLEC have an interconnection agreement, both the ISP/CLEC and the interconnecting ILEC and/or CLEC must pay each other for the amount of local traffic (per minute) that each carrier terminates on each other's network. The payments for reciprocal compensation vary from ILEC to ILEC but are typically between 0.2 and 1.04 cents per minute. Although reciprocal compensation could be a new revenue source for the ISP/CLEC, we at ISG-Telecom NEVER recommend creating a business plan or business case model around reciprocal compensation. ISP/CLECs that choose to become CLECs to participate in reciprocal compensation should be aware of the current regulatory climate. Reciprocal compensation, in light of recent FCC considerations, should be considered "gravy" income ONLY.
Many ILECs have claimed, and fought, that reciprocal compensation for ISP-related traffic is not due, to the ISP/CLEC, under the existing FCC and state rules. These ILECs do not consider that the typically one way traffic, generally created by an ISP, to be reciprocal and thus are fighting the reciprocal compensation payments for ISP traffic. The ILECs also claim that reciprocal compensation is meant only for local calls, not calls to ISPs, which they claim, are interstate in nature. There has not been a current ruling from the FCC on this issue yet, but is expected sometime in 1999. These ILECs have withheld payments to CLECs who serve ISPs, who the ILECs believe are accumulating large amounts of ISP traffic for the purposes of collecting reciprocal compensation payments. In over 20 challenges to State PUCs, the reciprocal compensation payments for ISP traffic has been upheld as both local in nature and subject to the payment of reciprocal compensation on those states. In other words, the ILECs have lost every case, with the State PUCs, in which it has challenged the payment of reciprocal compensation. The FCC and numerous states are currently addressing this issue, which likely will be resolved, as part of total access reform and/or new internet service regulatory actions. It is most likely that reciprocal compensation will be re-formulated, with a lower percentage payment for ISP traffic and a higher percentage payment for conventional true voice traffic, within the next 12 months.
Other advantages in becoming an ISP/CLEC, besides obtaining discounts on lines and advantageous reciprocal compensation arrangements, is that by becoming a CLEC enables the ISP/CLEC to operate as a "PEER" to the ILEC, which creates a virtual level playing field. As opposed to the end-user retail customer status, an ISP/ CLEC can obtain a whole new group of negotiation rights, including quality of service, good faith negotiation, and regulatory protections/enforcement mechanisms.
Another advantages to becoming a facility-based CLEC is the opportunity to profit from long distance calls. Termination and origination fees may be collected and usually average between 0.017 and 0.03 per minute. These collected fees will outweighs the reciprocal compensation fees. Switching equipment is more expensive but the revenues can overcome the costs. In today's market environment, convergent services are taking the lead, as the #1 reason for customer retention, instead of price, as it was just a few years ago. Churning can be virtually eliminated by offering your customer base a package that is all inclusive of both internet and telephony services.
Looking at the ISP/CLEC arena from the bigger perspective, the direction of the ISP and telecom industry suggests that an ISPs who want to remain competitive must take a serious look at becoming an ISP/CLEC. With the telecom industry moving towards convergence models where voice, video and data will travel the same fiber optic lines into end-user homes, becoming a ISP/CLEC will be a critical step for a current ISP to position itself competitively.
Today’s market environment leaves an ISP with only four (4) choices:
1. Become a CLEC
2. Partner with a CLEC
3. Be bought out or merge with another large ISP and/or CLEC
4. Be pushed out of business
ISP/CLECs who control their own destiny will be in a position to take advantage of new service offerings, such as VoIP and the ISP that is already a CLEC is better positioned, under current regulations, to enter into VoIP as just one of many other telco services available.
In conclusion, the telecom industry is rapidly evolving, and ISPs need to change with it if they are going to remain competitive. Therefore, ISPs should contact ISG-Telecom and "TAKE THE PLUNGE" by becoming an ISP/CLECs. To find out if your ISP qualifies to become an ISP/CLEC fill out the by becoming an ISP/CLECs. To find out if your ISP qualifies to become an ISP/CLEC fill out the ISG-Telecom ISP/CLEC Questionaire and fax it back to us for immediate review and a NO COST initial analysis.
How to become a CLEC
How To Become A CLEC
The following steps and implementation procedures are designed to give the ISP who wishes to plunge into the telecom business an idea of the processes and procedures necessary to become a CLEC (Competitive Local Exchange Carrier). These procedures also give you an opportunity to understand how much time and effort we put into your turn-key solution.
PHASE I:
Hire a good telecom regulatory and consulting firm such as ISG-Telecom Consultants (www.isg-telecom.com)
Make a determination whether becoming a "switchless reseller" CLEC or a "facility-based" CLEC is best for your overall business plan
Analyze the current ISP financial picture and telecom costs. Have a business case model done by ISG-Telecom, which will be utilized as the cost justification tool in order to determine whether "facility-based" CLEC status is right for you.
Plan your strategy session with the ISG-Telecom team of experts (principles, regulatory and project management personnel). This will help determine the pricing and service elements that will be set into your tariff.
ISG-Telecom will draft your CLEC application
ISG-Telecom will draft your tariff
ISG-Telecom will begin negotiations for your interconnections agreement (or resale agreement)
All documents are approved by client and sent to the appropriate Public Service Commission Repeat steps V through VIII if client wishes to sell long distance services as an IXC
PHASE II:
ISG-Telecom will contact its Strategic Partners and begin organizing equipment layout and quotes
Equipment is ordered
Follow-up with the PUC on certification process
ISG-Telecom starts setting up the back office procedures (Billing, customer service, operator services, DA & 911)
Certification is received
Equipment is delivered, installed and turned-up for Beta testing
Back office functions are put in beta to co-ordinate with switch
Hire and train your sales, operations, marketing, & product marketing teams
Reseller Implementation Process
* File with Public Utility Commission for Competitive Local Exchange status
* File and obtain operating codes needed
* File and obtain Interconnection/Resale Agreement with Incumbent Local Exchange Carrier of choice
* Establish wholesale account with ILEC
* Schedule provision and billing training with ILEC or qualified trainer
* OSS Setup including all Vendors.
* Kickoff test and marketing strategy
Facilities-Based Implementation Process
* File with PSC for CLEC status
* Select and rank target cities and LATA(s)
* Identify and define local rate structure, determine total of NXX codes per LATA
* Identify possible site locations for ( Customer ) central offices
* Identify space needs for (1) switch, (2) transport facilities, (3) power & battery plant, (4) emergency generator plant
* File for ILEC Interconnect Agreement
* Review franchise/right of way requirements for each CO location
* Identify ILEC tandem locations within the designated LATA(s)
* Identify all independent tandem locations within the designated LATA(s)
* Identify all other Tandem functions and locations where OS, DA, interLATA toll
* and interexchange access is provided
CLEC status obtained
* Identify any interconnection or collocation sites and develop preliminary network architecture.
* Identify primary interconnection point for interconnection to ILEC and the public network
* Develop a preliminary estimate of total lines, prefixes, numbers, CCS/MS and traffic distribution and growth rate. Estimate the switch size based on these assumptions
* Identify any Virtual Number Groups required in the serving LATA and central office interconnection for these number groups
* Preliminary estimate of facility types and trunk group identification for each (CLEC) central office.
* Develop an initial demand and facilities chart based on assumptions made above. This chart will be used until it can be updated with actual traffic measurements
* Identify and initiate a meeting with ILEC Account Manager(s)
* Formally advise the ILEC, in writing, on the collocation method(s) and central office locations and request a response on availability and cost. Provide ILEC a tentative collocation equipment layout and floor plan for each location. Meet with ILEC engineers to resolve any problems and to answer questions on wiring, interfacing and other details
Interconnect agreement finalized with ILEC(s)
* Obtain franchise agreements with each serving city
* ILEC begins interconnection construction
* Request NXX codes from the network number administrator ( LOCKHEED ).
* 66 days are required to update the LERG ( Local Exchange Rate Group )
* Obtain CLLI codes for the CLEC central office(s)
* Obtain OCN code
* Select an SS-7 provider for transporting calls
* Identify preliminary E911 and PSAP requirements
* Identify any special taxing arrangements for local franchise or E911 service tax
* Finalize the network facilities and trunking architecture
* CLEC begins construction at collocation sites
* Issue ASR(s) to ILEC for trunks and establish due dates for completion.
CLEC NPA-NXX activation date
* Complete agreements with E911 PSAPs
* Issue ASR(s) and establish due dates for SS-7 "A" links. NOTE: SS-7 "A" links must be functional before trunk testing can begin
* Determine the database access through the SS-7 provider. This will include LIDB, 800 and LNP
* Decide on the method of updating the LNP database
* Obtain an SS-7 certification with the SS-7 provider
* Issue ASR(s) for OC-X, DS3 and DS1 and establish due dates for facilities between the ILEC and CLEC central offices
* ILEC and CLEC interconnect facilities and begin acceptance testing
* Joint testing between CLEC and ILEC of facilities and routing
* Joint testing between ILEC and CLEC of facilities and routing
* Perform LNP testing with the LNP database provider, SS-7 provider and the ILEC
* Establish a joint task force with the ILEC to develop OSS interfaces for order entry, provisioning, maintenance and trouble reports
* Decide on how to handle Operator calls
* Decide on how to handle billing issues
* Establish a joint task force with the ILEC to develop billing interfaces for exchange of billing data.
* The same arrangement must be established with Long Distance service carriers (IXC)
* Create test billing tape for CLEC central office
* Perform billing verification with ILEC and IXC
* Decide on how to handle Yellow Page and Directory listings, information and distribution. Work with ILEC Account Manager
* Establish target date for switch activation and turn up to network
The following steps and implementation procedures are designed to give the ISP who wishes to plunge into the telecom business an idea of the processes and procedures necessary to become a CLEC (Competitive Local Exchange Carrier). These procedures also give you an opportunity to understand how much time and effort we put into your turn-key solution.
PHASE I:
Hire a good telecom regulatory and consulting firm such as ISG-Telecom Consultants (www.isg-telecom.com)
Make a determination whether becoming a "switchless reseller" CLEC or a "facility-based" CLEC is best for your overall business plan
Analyze the current ISP financial picture and telecom costs. Have a business case model done by ISG-Telecom, which will be utilized as the cost justification tool in order to determine whether "facility-based" CLEC status is right for you.
Plan your strategy session with the ISG-Telecom team of experts (principles, regulatory and project management personnel). This will help determine the pricing and service elements that will be set into your tariff.
ISG-Telecom will draft your CLEC application
ISG-Telecom will draft your tariff
ISG-Telecom will begin negotiations for your interconnections agreement (or resale agreement)
All documents are approved by client and sent to the appropriate Public Service Commission Repeat steps V through VIII if client wishes to sell long distance services as an IXC
PHASE II:
ISG-Telecom will contact its Strategic Partners and begin organizing equipment layout and quotes
Equipment is ordered
Follow-up with the PUC on certification process
ISG-Telecom starts setting up the back office procedures (Billing, customer service, operator services, DA & 911)
Certification is received
Equipment is delivered, installed and turned-up for Beta testing
Back office functions are put in beta to co-ordinate with switch
Hire and train your sales, operations, marketing, & product marketing teams
Reseller Implementation Process
* File with Public Utility Commission for Competitive Local Exchange status
* File and obtain operating codes needed
* File and obtain Interconnection/Resale Agreement with Incumbent Local Exchange Carrier of choice
* Establish wholesale account with ILEC
* Schedule provision and billing training with ILEC or qualified trainer
* OSS Setup including all Vendors.
* Kickoff test and marketing strategy
Facilities-Based Implementation Process
* File with PSC for CLEC status
* Select and rank target cities and LATA(s)
* Identify and define local rate structure, determine total of NXX codes per LATA
* Identify possible site locations for ( Customer ) central offices
* Identify space needs for (1) switch, (2) transport facilities, (3) power & battery plant, (4) emergency generator plant
* File for ILEC Interconnect Agreement
* Review franchise/right of way requirements for each CO location
* Identify ILEC tandem locations within the designated LATA(s)
* Identify all independent tandem locations within the designated LATA(s)
* Identify all other Tandem functions and locations where OS, DA, interLATA toll
* and interexchange access is provided
CLEC status obtained
* Identify any interconnection or collocation sites and develop preliminary network architecture.
* Identify primary interconnection point for interconnection to ILEC and the public network
* Develop a preliminary estimate of total lines, prefixes, numbers, CCS/MS and traffic distribution and growth rate. Estimate the switch size based on these assumptions
* Identify any Virtual Number Groups required in the serving LATA and central office interconnection for these number groups
* Preliminary estimate of facility types and trunk group identification for each (CLEC) central office.
* Develop an initial demand and facilities chart based on assumptions made above. This chart will be used until it can be updated with actual traffic measurements
* Identify and initiate a meeting with ILEC Account Manager(s)
* Formally advise the ILEC, in writing, on the collocation method(s) and central office locations and request a response on availability and cost. Provide ILEC a tentative collocation equipment layout and floor plan for each location. Meet with ILEC engineers to resolve any problems and to answer questions on wiring, interfacing and other details
Interconnect agreement finalized with ILEC(s)
* Obtain franchise agreements with each serving city
* ILEC begins interconnection construction
* Request NXX codes from the network number administrator ( LOCKHEED ).
* 66 days are required to update the LERG ( Local Exchange Rate Group )
* Obtain CLLI codes for the CLEC central office(s)
* Obtain OCN code
* Select an SS-7 provider for transporting calls
* Identify preliminary E911 and PSAP requirements
* Identify any special taxing arrangements for local franchise or E911 service tax
* Finalize the network facilities and trunking architecture
* CLEC begins construction at collocation sites
* Issue ASR(s) to ILEC for trunks and establish due dates for completion.
CLEC NPA-NXX activation date
* Complete agreements with E911 PSAPs
* Issue ASR(s) and establish due dates for SS-7 "A" links. NOTE: SS-7 "A" links must be functional before trunk testing can begin
* Determine the database access through the SS-7 provider. This will include LIDB, 800 and LNP
* Decide on the method of updating the LNP database
* Obtain an SS-7 certification with the SS-7 provider
* Issue ASR(s) for OC-X, DS3 and DS1 and establish due dates for facilities between the ILEC and CLEC central offices
* ILEC and CLEC interconnect facilities and begin acceptance testing
* Joint testing between CLEC and ILEC of facilities and routing
* Joint testing between ILEC and CLEC of facilities and routing
* Perform LNP testing with the LNP database provider, SS-7 provider and the ILEC
* Establish a joint task force with the ILEC to develop OSS interfaces for order entry, provisioning, maintenance and trouble reports
* Decide on how to handle Operator calls
* Decide on how to handle billing issues
* Establish a joint task force with the ILEC to develop billing interfaces for exchange of billing data.
* The same arrangement must be established with Long Distance service carriers (IXC)
* Create test billing tape for CLEC central office
* Perform billing verification with ILEC and IXC
* Decide on how to handle Yellow Page and Directory listings, information and distribution. Work with ILEC Account Manager
* Establish target date for switch activation and turn up to network
Subscribe to:
Posts (Atom)
