The U.S. Market for CLEC-Owned End-User Switched Access Lines and VoIP Subscriptions is Projected to Reach 182.7 Million by 2022

Aggressive Implementation of New Technologies & Better Service Attributes Than ILECs Drives Growth of Competitive Local Exchange Carriers (CLECs), According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market size, share and demand forecasts on the U.S. Competitive Local Exchange Carriers (CLECs) market. The U.S. market for CLEC-owned End-user Switched Access Lines and VoIP subscriptions is projected to reach 182.7 million by 2022, driven by CLECs greater agility, flexibility and ability to innovate and capitalize on new technologies and network paradigms when compared to their entrenched incumbent competitors.

Competitive local exchange carriers (CLECs) refer to businesses that are based locally, who purchase or lease telephone lines and switches from leading telecom operators and offer alternate higher quality telephone services to end users at a competitive price. CLECs came into the spotlight following privatization of the telecommunication industry initiated during the mid-1990s and the ensuing freeplay of competitive forces. CLECs provide high speed data solutions to telecommuters, home users and businesses. Today, CLECs have evolved from being just alternative access providers into a new breed of players capable of providing full end-to-end services. As a result, Incumbent Local Exchange Carriers (ILEC) today face tough competition from CLECs, as these two categories of players compete head-to-head in the telecom industry. Over the years, CLECs have collectively cornered a sizable share of the market pie. Of late, competition from multiple quarters i.e. ILECs, other CLECs, cable companies, and VoIP service providers, has forced CLECs to invest in resource to evolve their networks to the IP platform. The growth in the market is driven by investments in core network and focus on last mile technologies. CLECs are also gaining from the provision of high-capacity solutions to business customers.

The growing need for sophisticated telecommunication services and improved bandwidth, in addition to increased use by consumers and need for affordable tariff plans are anticipated to fuel growth in the CLEC market through the forthcoming years.  A major trend in the CLECs market is the shift in focus from residential end-users to SMBs. Surging demand for data services and associated technologies from small and medium-sized businesses makes this segment an attractive target for CLECs. CLECs, which have traditionally focused on provision of value-added services and adopted a customer-centric approach, are expected to capitalize on the burgeoning opportunities. Other major trend includes CLECs embracing fixed wireless, as fiber wireless services have undergone significant technological developments to improve their capability of performing on par with the wireline technology, but requiring relatively lower investment and time.

As stated by the new market research report on Competitive Local Exchange Carriers (CLECs), VoIP segment is the largest as well as the fastest growing segment with subscriptions projected to surge at a CAGR of 12.3% over analysis period. In terms of connectivity technology, coaxial cable represents the largest as well as fastest growing segment.

Major players covered in the report include Broadview Networks Inc., Cogent Communication Inc., Consolidated Communications Holdings Inc., Cox Communications Inc., DQE Communications LLC, Electric Lightwave, FiberLight LLC, Granite Telecommunications, LLC, Level 3 Communications Inc., TelePacific Communications, Windstream Holdings Inc., XO Communications LLC, and Zayo Group LLC.

The research report titled “Competitive Local Exchange Carriers (CLECs): A US Market Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of US companies. The report provides market estimates and projections for Competitive Local Exchange Carrier (CLEC) Service Connections by Segment - End-User Switched Access Lines and VoIP Subscriptions. The CLECs market is also analyzed by Type of Access Technology – Coaxial Cable and Others.

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