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What’s a CLEC?
Most of you have probably been solicited by phone service resellers wanting you to sign up with them as your local telephone company. These resellers are called Competitive Local Exchange Carriers, or CLECs. Some of them have their own switching equipment and actually handle the routing of your calls, but most of them are literally ‘resellers,’ which means that they buy telephone access in bulk from the Incumbent Local Exchange Carrier (ILEC) and resell it for a profit. CLECs ultimately compete with ILECs, the companies that, until the Telecommunications Act of 1996 (also known as deregulation), were the only local utility phone companies, such as AT&T, Qwest, and Verizon.
What are the benefits of switching to a CLEC?
The universal come-on is that, because they are creating competition in the marketplace, they will save you money on your phone bill. Case in point: a lead line from one CLEC reads, “Improving your bottom line remains our first priority.” It is probably true that their cost per minute on most calls is less and that your monthly phone bill would probably be lower if you switched, but consider the other, more negative effects of switching to a CLEC…
What are the potential problems of switching to a CLEC?
On the whole, our clients found that the problems they suffered from CLEC phone service were not worth the savings they may have realized. Common CLEC-related problems include the appearance of erroneous listing information (pertaining to business name, address, and/or telephone number), duplications, or omissions in the white pages and directory assistance/411, as well as general service problems. And if you do run into such problems, CLECs—unlike ILECs—will not often provide you with a dedicated representative to resolve these problems.
Although CLECs are becoming better educated in dealing with the listings side of their business, we believe the reason for such problems is both the CLECs’ lack of listing experience/expertise and an appalling lack of guidelines from the telecommunications industry governing the relationship between the CLECs and ILECs. In fact, the FCC continues to respond to requests for clarification on the Telecommunications Act of 1996, and it is predicted that it could take several more years before their recommendations are implemented, challenged, and ruled on.
If you do switch, we’d go so far as to predict that you’ll not only switch back to your ILEC, but end up with very strong negative feelings toward your CLEC before you’re done.
How can I avoid these problems?
Because it is so difficult to ensure/negotiate accurate listing information with CLECs, we strongly urge you not to sign with a CLEC, at least not without extensive screening on your part (which we would be happy to assist you with). In particular, do not sign any document entitled “Letter of Agency”. A letter of agency gives control of all aspects of your telephone service to your CLEC, meaning that other vendors (such as Leone Advertising) can no longer act on your behalf to ensure that your white pages listings are accurate and formatted correctly.
What if I still want to switch?
Maybe you hate your local phone company. Maybe your best friend has just started a CLEC business. If, for some reason, you still want to switch to CLEC service, we recommend you do some careful research before finalizing any agreements. We first request that you inform us, your advertising agent, so we can help evaluate the value of your prospective CLEC’s service to you from a yellow pages point of view. Then, we suggest asking your prospective CLEC for some important information:
• Ask them to review your current phone bill and verify in writing the savings they claim. Just as with competing long distance carriers, the actual savings may vary depending on factors such as how calling time is rounded. Also ask about what additional one-time, monthly, or miscellaneous service charges will be incurred with their service.
• Ask for references, and check them.
• Ask if there is a charge to list your business telephone number in both the white and yellow pages of your local primary phone book. Most ILECs include one free white and yellow pages listing as part of your monthly phone service, but these free listings may not apply if you change to a CLEC.
• Ask them to show you the written procedure or form on which they would communicate with the ILEC
to ensure that your listings are accurate (or re-established in the same format). If they can’t provide it, that’s a red flag.
• Ask to have a dedicated representative in the event of any problems.
• If you do ultimately decide to switch phone service, always obtain representative contact information, date, and service order activity numbers (if applicable) for each interaction you have with the CLEC.
If you want more information…
If you want some additional legal and regulatory background on CLEC issues or assistance in evaluating your options, please contact Laurel or Kacie, and we will do our best to assist you or direct you to the right resource. |