Local phone carriers have been around since the invention of the telephone. Competitive Local Exchange Carriers (CLECs) have only been around for about 12 years. In the old television shows "Green Acres" and "Petticoat Junction”, most everyone went down to the local exchange aka the Hooterville General Store to use the phone. Today's business owner needs always-available voice and data services provided at a cost that doesn't run their bottom line out of town on a rail.

Competitive Local Exchange Carriers (CLECs) are relatively new telephone companies that have built their own networks and switching centers. The Telecommunications Act of 1996 opened the door for CLECs to enter the marketplace and compete with established local phone carriers. The CLEC mission is to be a more responsive and flexible alternative to the historically dilatory incumbent local exchange carriers (ILECs). Here's how your business can identify and select cost-effective CLEC services, improving how you deliver products and services to your customers.

1. Determine what long distance and local exchange telephone services are key to your business.

2. Find Competitive Local Exchange Carriers that provide the best service and support in your area.

3. Choose from the best nationwide CLEC providers for more complex needs.

Action Steps
The best contacts and resources to help you get it done

Audit your long distance and local exchange telephone services

Ask yourself the following questions: What does my business need phone service for? How often do employees call out? How often do my customers call in? Do we need an 800 number? Could we save money by switching to an unlimited long distance plan? Do I need voice mail? The answers to these questions will help you communicate with prospective providers. If your company has many/complex voice services, you may need help.

I recommend: For larger companies, sign up for a free demo of TelSoft Solutions call accounting software. TelSoft offers a full-featured suite that will help you manage everything from local phone carrier operational costs to fraud control. If your business is smaller, take advantage of free auditing services offered by a competitive local exchange carrier. Good ones, like NuVox and Deltacom, will look at your phone bill and tell you where you can save money without sacrificing service. If a CLEC won't talk to you on the phone or in person and tailor costs and services to your needs, move on.

Compare local and regional CLECs in the United States

Focusing on US CLECs, there are still plenty around that provide great service and support. Small CLEC companies are attractive and offer a more 'homey' feel, but regional CLEC companies will likely have more robust networks, larger support staffs and the ability to offer more competitive pricing.

I recommend: Cavalier Telephone is a large CLEC with network coverage in the East, Midwest and Southeast regions. They provide long distance, local exchange, Internet and in some locations, IP TV services. Find out whether Cavalier will service your area. TelePacific Communications is a smaller company offering CLEC service in California and Nevada. Get an online quote with TelePacific. Need a larger coverage area out West? Learn more about what Integra Telecom can do for your business. Get a complete list of CLEC's registered with the Federal Communications Commission by selecting "CAP/CLEC".

Select an award-winning Competitive Local Exchange Carrier (CLEC) with nationwide coverage

After comparing services, features, support quality, network quality, installation fees, package pricing and all the other variables, deciding on the right CLEC might come down to choosing award-winning CLECs with national footprints.

I recommend: For a complete business phone service solution fill out the Paetec online service request. Paetec is a nationwide CLEC serving more than 82 of the top 100 Metropolitan Statistical Areas across the US. Atlantic-ACM recognized Paetec as the top overall United States Competitive Local Exchange Carrier. For multi-award-winning CLEC phone services, email Level 3 for a customized CLEC voice offering for your business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Do your homework. The more local phone carriers you research, the better your chances of finding the right fit for your business.
• •  Decide up front what CLEC services are most important to your business. Is price the driving factor or do you need all the features?
• •  If applicable, don't forget the importance of communicating between sites. If your business has multiple locations, larger CLEC providers may offer a better fit for your company.

Making the most of competitive local exchange carriers (CLEC) comes down to two factors: saving money on telecom expenses and getting the services your business needs. CLEC companies have existed since the Telecommunications Act of 1996, which deregulated phone service. They compete with incumbent local exchange carriers (ILECs). ILECs are the carriers that were in place before deregulation.

Some larger competitive local exchange carriers host their own lines, but most use rack space and lines provided by the ILEC and act as a reseller. They resell the services to local customers and coordinate customer service and repair services. Some of the ways to choose the best service from CLECs include:

1. Do a thorough comparison of local phone carriers in your area.

2. Check out services provided by large national telecommunications providers.

3. Get help from a consultant to find ways to save money and utilize technology.

Action Steps
The best contacts and resources to help you get it done

Compare ILEC and CLEC providers

Plans and services differ among telecom providers. Shopping around for service is necessary to find the best solution for your business and to uncover all the options available. Some small providers may not offer a well-known name, but could still offer just what your business needs.

I recommend: The Federal Communications Commission provides a list of CLECs as well as incumbent local exchange carriers throughout the U.S. To find more options for your state, visit the National Association of Regulatory Utility Commissions.

Check out large providers for CLEC service

Most nationwide telecommunications providers operate as competitive local exchange carriers in areas where they are not the incumbent provider. Some of the benefits of using a large national provider is reliable service and a robust, secure network. National providers also offer additional features that can be bundled with your phone service to save money.

I recommend: Check out services from Verizon, Cavalier Telephone & TV and AT&T. In most areas, these companies also provide high-speed Internet, wireless and satellite television. They also offer packages for business, including voice mail and call management software. Save money by bundling packages.

Get assistance in choosing CLEC services

Choosing a provider can feel like an overwhelming process. Comparing services, as well as analyzing your current phone bills is a lot of work. A telecommunications consultant can help. Consultants are familiar with local carriers and can help choose solutions to save money on local and long distance service. Choose a consulting company that is familiar with current technology to assist in choosing voice mail and call management solutions to integrate with your telecom service.

I recommend: Webb & Associates is a consulting firm that offers telecom consulting services to help find the best technology solutions. A.J.C. Communications will review and audit current telecom services and recommend solutions to save money and utilize telecommunications technology. To find more consultants, check the Society of Telecommunications Consultants for a directory of consultants throughout the United States. Members must adhere to strict professional standards and a code of ethics.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A smaller competitive local exchange carrier in your area often offers personal service and a great deal. However, it may have limited control over system outages and repair time. Check references and ask about reliability.

As someone who runs a telecommunications business, one of your tasks is to keep up on competitive local phone carriers. You’re aware that they face challenges, such as complying with FCC rules and competing against big giants such as AT&T or cable companies such as Comcast.

The telecommunications industry is constantly changing, particularly making the transition from analog to digital technology. As a result, CLECs have to change their business models if they want to survive. Here are three ways you can learn about the challenges that CLECs face:

1. Train yourself on CLEC services through podcasts and webinars.

2. Become familiar with the challenges that impact CLECs.

3. Learn how to use reports to understand technological trends of CLECs.

Action Steps
The best contacts and resources to help you get it done

Learn about CLEC services through podcasts and webinars

Perhaps you don't want to read articles about CLECs. Another way of getting competitive local exchange carriers (CLEC) management education and training is watching podcasts and webinars. Hear speakers discussing the challenges that local phone carriers are experiencing. You can also learn about the solutions that technology companies offer to CLECs. Speakers might also cover business strategies that local phone carriers must implement and use if they are to be successful.

I recommend: MetaSwitch offers informative podcasts on CLECs. You can learn about new business strategies CLECs must adopt if they want to thrive in the industry. You can also learn how Cisco is playing a role in helping CLECs to transform to the next generation networks. Xchange is a place you'll want to check for webinars on CLEC services.

Educate yourself on issues that affect CLECs

If you want to run a successful telecommunications business, it's important to educate yourself on issues that impact competitive local exchange carriers. Indeed, CLECs in the Unites States face many challenges. First, they must make sure they're complying with regulatory policies, particularly with the FCC (Federal Communications Commission). Second, they must find ways to be competitive against the ILECs (incumbent local exchange carriers), such as AT&T or Verizon. Other issues that local exchange carriers face are operational, including ordering, provisioning, and billing.

I recommend: IEC is a good resource to check often for competitive local exchange carriers (CLEC) management education and training. This non-profit organization focuses on challenges that CLECs encounter, such as line-sharing from ILECs. Broadband DSLReports is also another website you’ll want to check out. Here, you’ll learn how CLEC providers are griping about an upgraded technology, ADSL2+, that Qwest wants to provide to its customers. With this upgrade, CLEC companies believe Qwest is trying to kill their businesses.

Learn via reports about strategies and technological trends that CLEC services employ

Analyzing reports can help you learn about strategies that CLECs use to stay competitive and generate profits. They give you a snapshot of the telecommunications industry. You can also learn about why and how IP-based applications are replacing analog phone services. Reports don't just supply you with technological trends, but you can educate yourself on the future directions of CLEC providers, profiles of their executive teams, and financial information.

I recommend: Look to redOrbit for reports on CLECs; learn about the successful and failed strategies that CLECs used. The reports also enable you to learn about their future directions and market share. MindBranch also supplies reports. You can learn about the latest technological trends, including the ever-increasing desire to develop higher-bandwidth in order to deliver video application and IP-based data.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To get more information on local phone carriers, consider joining a CLECs association. You will get first-hand information on issues they face and solutions they're developing to solve them.

The Competitive Local Exchange Carrier, or CLEC, is a product of recent times. Legislation that regulates telephone service providers created the CLEC category and established how these newer competitors can offer services to clients, including unlimited long distance, digital telecom and an array of other communications features. Some reading up on basic key terms around the CLEC will help businesses see how these operations came into being and the role they play in the telecom industry.

Action Steps
The best contacts and resources to help you get it done

Telephone exchange

The telephone exchange is what CLECs are built around, though some of the more recent technology renders this term antiquated. The telephone exchange, also called a switchboard, is the essential network for enabling voice telecom, from the early days of the 'party line' to today's mix of analog and digital solutions.

I recommend: The Dubois Telephone Exchange offers local access, dial up and broadband Internet, and even web development services.

Telecommunications act of 1996

The Telecommunications Act of 1996 governs the operation of CLECs. This piece of legislation was key in updating the system of local exchange carriers for business in the 21st century.

I recommend: See more details on the Telecommunications Act of 1996 at the Museum of Broadcast Communications.

Incumbent Local Exchange Carrier (ILEC)

The ILEC is the competitor of the CLEC. The Telecommunications act of 1996 differentiated between ILECs (those carriers in place before 1996) and CLECs (those begun after that time).

I recommend: See more on the history of ILECs at HowStuffWorks.

Federal Communications Commission, or FCC

FCC is the federal agency tasked with overseeing CLECs and ILECs, among many other sectors of the telecom and broadcasting media industries. The FCC continues to regulate how carriers offer tech and telecom services, as well as how broadcasters use their new media to reach out to the public.

I recommend: Get much more info on the FCC at WiseGeek.

Voice over Internet Protocol, or VoIP

VoIP takes an analog voice signal and digitizes for transmission over the Internet or other digital means. VoIP is a newer development in the telecom world, and many CLECs offer the service.

I recommend: Find out more about VoIP at Ars Technica.

One-way and two-way trunking

Trunking is the way in which telecommunications companies use the same line to service multiple clients, instead of giving each client an individual line. A one-way trunk is between two switching centers, but must have originated from its assigned end. A two-way trunk could be seized by incoming or outgoing communications traffic.

I recommend: Cisco has an in-depth explanation of trunking. Javvin defines one-way and two-way trunk.