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D ELIVERY S OLUTIONS
Seizing
the CLEC
Opportunity
Seizing
the CLEC
Opportunity
It's an exciting time to be a competitive local exchange carrier (CLEC). With more carriers entering the
market, customers know they have many options for service. In fact, shopping around for the most
economical and best quality solution is becoming almost as basic for businesses as casual Fridays. For
new competitors, the key to getting customers' attention is finding a cost-effective way to deliver and
differentiate their services. The opportunity is clear when CLECs take a look at the exploding T1 ser-
vice delivery market. T1 services are growing at 30 to 40 percent annually to meet the demand for hicap
Delivery
voice, ISDN-PRI, Frame Relay, Internet access, PCS access, and ATM services.
CLECs that find a way to bundle these services and offer both voice and data over the same line will
set themselves apart from the competition. Customers benefit from one-stop-shopping, while the
CLECs reduce the cost of doing business by bundling services over the same T1 line. With a grow-
ing number of businesses now having at least one T1 line, the potential to generate more revenue for
your business is clear. Currently, more than 60 percent of businesses with 50 or more employees
have at least one T1 line, and that number is growing--fast. For CLECs, T1-based services can account
for a majority of total revenue and a corresponding percentage of profit. Capitalizing on this potential,
however, takes careful planning. One of the key decisions facing CLECs is selecting complementary
transmission and access products for optimal service delivery and improved customer satisfaction.
Reliable T1
Making the right choices will position CLECs to take advantage of the exploding local services market.
To capitalize on the opportunity, CLECs must rapidly capture revenue-
generating customers. To maintain a competitive advantage,
CLECs must minimize their total service access and
delivery cost. Likewise, they must find a reliable
way to reduce their total costs associated with
trouble resolution, service restoration, and
maintenance. Carriers that want to stay
ahead of their competition must make the
right business decisions to remain profitable.
CLECs currently building their customer bases need a service delivery architecture that can help them
control overhead expenses. At the heart of the preferred solution is unbundled copper—the method that
can save CLECs a bundle over traditional approaches of T1 delivery.
Unbundled copper is the best replacement for leasing T1 lines directly from the incumbent provider.
CLECs that lease T1s, commonly referred to as Type II lines, tie into these circuits at the ILEC facility
where the T1s are typically backhauled to their local digital switch. The remote end of these circuits ter-
minates into a standard channel bank housed on the customer premises.
Leasing T1 circuits directly from the incumbent local exchange carrier (ILEC) is most economically feasi-
ble in situations where the size of the CLEC customer base can’t justify the cost of collocation. But leas-
ing T1 circuits from an ILEC is expensive, and once a CLEC’s customer base grows, it’s a wise decision
to migrate to a more economical method of service delivery. Once CLECs have enough customers ser-
viced from the same ILEC central office, they can negotiate collocate space, order unbundled loops, install
equipment into that space, and systematically convert customers over to unbundled copper. When
migrating, CLECs should look for a service delivery system employing high bit-rate digital subscriber line
(HDSL) over unbundled copper elements. HDSL is a transmission technology that provides cost-effec-
tive delivery of high-speed services. HDSL offers long reach enabling signals to be transported on copper
cable over distances up to12,000 feet without repeaters.
Controlling Your
Service Delivery Bottom Line
Additionally, as ILEC collocation space is at a premium, a solution that minimizes the number of compo-
nents, such as integral M1-3 multiplexers, is important in conserving space and improving reliability. It
also offers a fiber-quality signal with installation times measured in hours--not weeks. There is now a new
generation of HDSL-enabled devices encompassing these important features, minimizing installation
costs, making it easier for carriers to take advantage of this technology.
Leased T1
Based Model
Access
Mux
DS0s
Leased T1
ILEC CO
CAP
POP Access
Mux
DS0s
Leased T1
Customer Premises
Unbundled Copper
over HDSL
Advantages
H
D Access
S DS0s
L Mux
Unbundled
ILEC CO Copper T1
H
CLEC D H
Collocate S D Access DS0s
L S
L Mux
Unbundled
Copper T1
Service Model
• HDSL is a mature technology used to provi- solution, CLECs should choose a complete
sion 80 percent of all new global T1 circuits system with intelligent technology that
• Gives CLECs major savings over leased T1s, allows them to provide superior service for
T 1
providing them with a more profitable business less money. The transmission platform
• Allows carriers to differentiate themselves by and access solution should be based on
o f
Control the Wire, Control Your • Minimizing total service access and
Business delivery costs by using unbundled loop
In order for a CLEC to get the maximum bene- versus Type II leased T1s
fit from migrating to less costly HDSL-based T1 • Rapidly capturing revenue-generating
service delivery, they must control the wire. customers by offering bundled voice and
Although the ILEC will still always own the data services
wire, CLECs can control services. Controlling • Reducing cost of trouble resolution,
the copper pairs improves trouble response restoration, and maintenance end-to-end
and customer satisfaction, thereby increasing • Increasing profitability of existing cus-
revenues. tomers
To gain control of those pairs, CLECs must • Enhancing competitive advantage
establish a collocate space at the ILEC end • Improving quality of service
office and select the right transmission plat-
form and access solution. When selecting a
Together, all of the advantages of a complete system offer a higher quality service in a more desir-
able package at a lower recurring cost to the service provider.
ADC Telecommunications has been helping service providers make the right choices for delivering
T1 for years. As the T1 service delivery experts, we understand the CLEC business and the T1 mar-
ket. We can help CLECs maximize their investments and make smart business decisions. We offer
a complete T1 delivery approach that can make CLECs more profitable and more successful in the
long run. ADC's experience and market savvy and a CLEC's desire to provide the best quality ser-
vice to customers can translate into a winning combination and higher profits.
Soneplex EZT1/DI-HDSL
Customer
ILEC
EZT1/
LDS DI-HDSL
ILEC Customer
CLEC
ADC’s Soneplex T1-based service delivery system The EZT1/DI-HDSL Voice and Data Multiplexer is a
gives a CLEC the best of both worlds—it gives simple yet powerful access solution that converts
emerging service providers the cost-effective sys- analog voice and digital data into HSDL and/or T1 net-
tem they need today while allowing them to plan work connections. This channel bank is the most
for the future because the platform is flexible advanced and cost effective T1 access solution on
enough to handle a wide range of T1-based ser- the market today, providing comprehensive, industry
vices. The system reduces every aspect of T1 leading access solutions for voice, video, Internet
delivery costs, including installation, monitoring, access, and wide area network data communica-
maintenance, and equipment utilization. The tions. CLECs will appreciate the user-friendly features
Soneplex system supports both HDSL and tradi- and benefits of the EZT1/DI-HDSL Voice and Data
tional T1 over copper, as well as optical DS2. There Multiplexer, including:
are many reasons for a CLEC to select the
Soneplex system, including: • Easy installation
• Compact size
• Integral M1-3 capability for aggregation of DS1s
to DS3s
• Integrated Soneplex HDSL port
• Based on ILEC-proven technology and NEBS cer-
• Full suite of ‘Class A’ analog line interfaces
tified—Neutralizes potential ILEC resistance
• Remote provisioning
Specifications published here are current as of the date of publication of this document. Because we are continuously improving our prod-
ucts, ADC reserves the right to change specifications without prior notice. At any time, you may verify product specifications by contacting our
headquarters office in Minneapolis. ADC Telecommunications, Inc. views its patent portfolio as an important corporate asset and vigorously
enforces its patents. Products or features contained herein may be covered by one or more U.S. or foreign patents.
4011 11/98 Original © 1998 ADC Telecommunications, Inc. All Rights Reserved An Equal Opportunity Employer