Markets We Serve

Birth of the U.S. Competitive Telecom Market

When the Telecom Act of 1996 came, the CLEC industry was born and over the next six years the market exploded.  The new operators couldn’t build fast enough.

The New Economy Entrepreneurs

Young entrepreneurs with tattoos ran the “new economy”.  Their motto was: "If we build it, they will come."  There was a time back then when you couldn’t get anyone to talk to you about sound business practices – like, do you know what your margin is?  Do you care what your margin is?

No one wanted to hear that.

We actually had clients who would say: "You’re too old to understand the new economy."  And by “new economy” they meant: "I don’t need to make money."

Reality Check Time

In 2001 when the bubble broke, the conversation changed dramatically -- particularly for the ISPs (internet service providers) -- as their world came tumbling down.  Then 9/11 came.   2001 to 2003 were tough years for everyone.

As we came into the mid-2000s, however, things started to grow again, and yes, making money was back in vogue.  Thank God, people started to make money and believe in the things we built a career on.

Soon enough, though, the LECs were allowed to revert back to their aggressive price controls in the local market.  That has hurt the competitive environment.  Luckily IP technology has alleviated the need for the CLECs to buy a lot of services from the incumbent LECs.

Why we see Rainbows on the Horizon

Today we see great hope for the competitive market. Huge innovation and much lower price points are driving the market now.  And people are interested now in managing their businesses competitively. They are looking inside to improve their operations which is a breath of fresh air.

We're seeing great room for recovery of operating margin and putting revenue/cost controls in place. Competitive operators are trying to manage their companies efficiently. That's the path to profitability.