If you’ve never considered sourcing your telecommunications services from a competitive local exchange operator (CLEC), the recent mergers of SBC + AT&T and MCI + Verizon might justify taking a look at them.

There are two ways in which CLECs provide telecommunications services: they have built their own network and switches, or they buy the services of established operators and resell them to their customers.

The Telecommunications Law of 1996 removed outdated regulations that hampered competition among telecommunications operators by allowing companies to build their own regional area networks and switches. This part of the law also obliged established operators to allow access to their national and global telecommunications circuits. The Law also mandated that established operators had to sell telecommunications services at wholesale prices to the CLECs. (Don’t feel sorry for incumbents; consumers pay for their equipment over decades of regulated tariffs.)

By their very nature, CLECs limit their customer base to regional areas, but they provide the same services as established operators: local and long distance calls (including VoIP), Internet, and cable services. Many offer feature packages that incumbents charge more for.

If you are rethinking your telecom costs, give your CLEC “neighborhood” a chance to show you what they have to offer. Regardless of the type of CLEC (s) in your area, using one can have a positive impact on your results.