AccessLan and TeleChoice Announce CLEC Business Case Analysis For DSL Deployment.SAN JOSE, Calif.--(BUSINESS WIRE)--March 31, 1999-- Lower Access Costs, More Flexible Deployment Mean Higher Margins for CLECs Deploying DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary for Business Broadband Customers AccessLan Communications, Inc., provider of packet-based local loop access equipment, today unveiled a new report, prepared with TeleChoice, Inc., a business and market strategy consulting firm, highlighting a major and largely untapped market opportunity for Competitive Local Exchange Carriers (CLECs) to use Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (DSL) technology to deliver business broadband services. Access costs represent a significant portion of overall service cost for CLECs, and the detailed report outlines a compelling business case for CLECs to deploy DSL to attack the multi-billion market opportunity for broadband business services. DSL has captured a lot of attention in recent years, but the focus has been on Internet access service for consumers using ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line , and more recently on the telecommuter and SOHO Soho (sōhō`, sə–), district of Westminster, London, England, known for its continental restaurants. Once a fashionable quarter, it became popular among writers and artists in the 19th cent. market with IDSL See DSL. and SDSL See DSL. SDSL - Single-line Digital Subscriber Line . The business case presented by AccessLan and TeleChoice spotlights the opportunities for a CLEC (Competitive Local Exchange Carrier) An organization offering local telephone service that is not one of the traditional telephone companies. The Telecommunications Act of 1996 allowed competition to the incumbent telcos (ILECs), enabling new companies (CLECs) addressing the requirements of their 'bread-and-butter' business customers for broadband connectivity. "Our business case focuses on the mainstream CLECs and illustrates how they can grab a bigger piece of the $80 billion local access services market pie and deliver broadband services to their business customers," said Kumar Shah, Vice President of Marketing. "This is in sharp contrast to Cisco's ADSL/Residential Internet service business case for Incumbent Local Exchange Carriers (ILECs) and Copper Mountain's Wholesale Internet service business case for Packet CLECs (P-CLECs)." The AccessLan/TeleChoice business case demonstrates how CLECs can deliver broadband services - Internet/Intranet access, Frame Relay access, VPN (Virtual Private Network) A private network that is configured within a public network (a carrier's network or the Internet) in order to take advantage of the economies of scale and management facilities of large networks. , Voice, and bundled services - and generate an astounding a·stound tr.v. a·stound·ed, a·stound·ing, a·stounds To astonish and bewilder. See Synonyms at surprise. [From Middle English astoned, past participle of astonen, 60 percent-plus Internal Rate of Return (IRR IRR In currencies, this is the abbreviation for the Iranian Rial. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ), Net EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of 35 percent, and positive cash flow in two years by building their own facilities-based Local Loop infrastructure. "The vast majority of off-net CLEC lines are leased circuits from the ILECs," noted Beth Gage, Director of Consulting at TeleChoice, Inc. "The AccessLan/TeleChoice 'Blue-print for building Facilities-based Local Loop Infrastructure' report shows how any CLEC can leverage DSL to support mainstream business. Even considering the up-front investments in co-location, equipment and infrastructure, the business case for CLECs to deploy DSL for business customers can be extremely compelling compared with other network models." DSL enables CLECs to compete more effectively with ILECs as broadband service providers for business customers, and also allows CLECs to create significant new revenue streams as Internet access wholesalers to Internet Service Providers (ISPs) or to interexchange carriers (IXCs). In addition, DSL supports multirate services over the Local Loop - the ability to deliver scalable bandwidth via multiple data streams at varying speeds up to T1 - a far more flexible solution than current fixed-rate services. Realizing the Full Potential of the 1996 Telecom Reform Act "The 1996 Telecomm Reform Act and the most recent FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. ruling that facilitates CO co-location have created new and exciting opportunities for the CLECs to build their own facilities-based Local Loop, as opposed to leasing this infrastructure from the ILECs," explained Ofer Doitel, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of AccessLan. "A CLEC leasing this infrastructure is at a huge competitive disadvantage, since the cost for leased lines is marked-up considerably by the ILEC (Incumbent Local Exchange Carrier) A traditional local telephone company such as one of the Regional Bell companies (RBOCs). Contrast with CLEC. See ELEC and TELRIC. . But by deploying DSL, CLECs can fundamentally alter the rules of the game and level the playing field with new high bandwidth service offerings. The model business case we have developed with TeleChoice clearly demonstrates just how compelling DSL really is for the CLEC community." The report detailing the business case analysis, jointly authored by TeleChoice and AccessLan, along with an interactive spreadsheet, which CLECs can use to build "what-if" scenarios based on the business model, are posted on the AccessLan (www.accesslan.com) and TeleChoice (www.xdsl.com) web-sites. (NOTE TO EDITORS: for details, see the complete text of the report in this kit.) Can CLECs Afford Not to do DSL? "To survive and thrive, CLECs simply cannot afford not to do DSL," contended Kumar Shah, Vice President of Marketing for AccessLan. "In addition to the dramatic Local Loop cost reduction resulting from building their own facilities-based Local Loop, our business case shows how a CLEC can tap into additional revenue opportunities. We challenge the CLEC community to find a business opportunity that is more compelling than the one for building a facilities-based Local Loop. Moreover, having built this Local Loop infrastructure to support their retail business, the CLEC can leverage it for a wholesale line of business that delivers even more attractive returns." DSL enables a CLEC to utilize the unbundled copper loop to deliver multi-megabit data services, thereby lowering its Local Loop cost by a factor of 10 to 20. This reduction in cost can be the difference between a profitable vs. unprofitable business for a CLEC. As the competition in the data services market increases, prices for services are clearly going to decline, and CLECs that continue to lease T1 lines from ILECs will face a squeeze on their margins. "The bottom line is that whoever owns the Local Loop owns the customer. Deployment of DSL can help CLECs capture a share of business customers and benefit from the explosive growth in packet services by catching the Internet wave and its triple digit growth rate," concluded Gage. AccessLan's PacketLoop(tm) Family of Products AccessLan has developed the industry's first carrier- class, variable-rate, multi-service, multi-access packet-based Local Loop DSL technology - PacketLoop. It is the only broadband IP and Frame Relay DSL solution that is optimized for business services. PacketLoop's modular approach - which includes CO and customer premises equipment See CPE. (CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment ) and network management software - offers tremendous flexibility for placement in the CLEC POP and ILEC CO. The AccessLan PacketLoop product family features a complete end-to-end solution, including customer premise equipment (CPE), central office (CO) access concentrators and systems management. AccessLan's PacketLoop products include the PL-5000 Broadband Service Multiplexer; the PL-2000 DSL Service Concentrator; the PL-1200 T1 Service Concentrator; the PL-200 SDSL Router; and the PL-100 DSL DSU, all managed by PL-Network Management System (NMS See NetWare Management System. ), which provides a comprehensive service, network and element management solution. (NOTE TO EDITORS: see other documents in this kit for more information on the AccessLan PacketLoop product family.) About AccessLan AccessLan Communications Inc., a Silicon Valley start-up and pioneer of PacketLoop, the next-generation, packet- based Local Loop solution, is a leading provider of carrier-class, business-focused DSL concentration and access equipment to the Local Exchange Carrier (LEC) market. AccessLan's PacketLoop platform provides variable-rate, multi-service infrastructure with intrinsic Quality-of-Service (QoS) management, ideally suited to delivery of packet-based services, including Internet/Intranet access, Frame Relay, Virtual Private Network and voice. The PacketLoop product family comprises highly scalable and reliable Central Office broadband service multiplexer and service concentrator products, CPE devices and a carrier-class network management system. Founded in 1997, AccessLan is financed by leading venture capital firms Name Location Founding date Managing Partners/Directors Specialty Capital managed 5AM Ventures Menlo Park, CA; Waltham, MA 2002 John Diekman, PhD (managing partner), Scott Rocklage, PhD (managing partner), Andrew Schwab (managing partner) life sciences $200M [1] Sequoia Capital, Accel Partners, and Berkeley International Capital, and by Intel Corporation. The company is headquartered in San Jose, California San Jose (IPA: /ˌsænhoʊˈzeɪ/) is the third-largest city in California, and the tenth-largest in the United States. It is the county seat of Santa Clara County. . For additional information, contact the company at (888) 411-4DSL or visit the Web site at www.accesslan.com. AccessLan and PacketLoop are trademarks of AccessLan Communications, Inc. All other trademarks are the property of their respective owners. |
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