If there’s one truth about being a CLEC these days, it’s that business models cannot be static. The shift to IP (and consequent phasing-out of TDM services), soaring bandwidth demand and a still-fragile economy all are keeping competitive carriers on the alert for strategic advantages. That’s especially the case as cable operators and LECs hone in on CLECs’ traditional business customers.
xchange asked nine CLECs about their views on and plans for 2010; executives from XO Communications (XOHO.OB), Cbeyond (CBEY), PAETEC (PAET), TelePacific and Integra Telecom responded. Below are comments from Don MacNeil, vice president of XO Carrier Services Operations; Jim Geiger, CEO of Cbeyond; John Chapman, PAETEC’s senior vice president of marketing; Ken Bisnoff, senior vice president of strategic opportunities at TelePacific; and Dudley Slater, CEO of Integra Telecom.
How and why does your company plan to adjust its business model over the next year? How do you see business models evolving more generally as the recovery gathers steam?
Don MacNeil, XO: Investing in DWDM, IP and Ethernet (both on long-haul and Metro). The focus is to capture growing demand for IP-based services enabled by “smart Ethernet pipes.”
Jim Geiger, Cbeyond: As we look at the first quarter of 2010, the same conditions with respect to the small business climate and 
We’ve implemented some fine-tuning to our sales model to improve the organization in our markets. We’re improving our sales automation tools, which we feel will be helpful to our reps’ productivity. And we repackaged our product offerings that we believe will be important in generating excitement in the market. ...Customers can add applications and features to personalize their bundles.
John Chapman, PAETEC: Our core business model of delivering advanced, customized communications supporting the needs of medium and large businesses...remains unchanged. However, the technologies have evolved, as well as our product set to meet customer needs.
For example, we have a focus in 2010 on business continuity, network security and data centers. The blizzards this past February across the nation point to the need for businesses to have plans for the unexpected. To meet those needs, we’re continuing to build out fixed wireless PoPs across the country to give an alternative to the terrestrial lines.
