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NPRG's 'Competitive IOC Report 2003' Finds Independent Telcos' CLECs Enjoying Competitive Advantages.


Business Editors

CHICAGO--(BUSINESS WIRE)--June 18, 2003

Market Forays by Non-Bell ILECs Showing Strength - But Larger Competitors Loom

A just-released 238-page report by New Paradigm New Paradigm

In the investing world, a totally new way of doing things that has a huge effect on business.

Notes:
The word "paradigm" is defined as a pattern or model, and it has been used in science to refer to a theoretical framework.
 Resources Group, Inc. (NPRG NPRG New Paradigm Resources Group, Inc. ), finds that Competitive Independent Operating Companies (CIOCs) run by non-Bell incumbents have found a workable niche in the local wireline arena for the moment - but soon could be threatened by larger competitors.

NPRG's Competitive IOC IOC
abbr.
International Olympic Committee

IOC n abbr (= International Olympic Committee) → COI m

IOC n abbr (=
 Report (IOC 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)  Research, Analysis & Forecasts) 2003(TM) (2nd Edition), reveals that nearly 10% of the nation's 900 non-Bell ILECs have launched upstart competitive providers outside their geographic markets since passage of the 1996 federal Telecommunications Act. While small compared to their incumbent rivals - or even to the CLECs - the CIOCs continue to turn in a solid, stable performance. Total CIOC CIOC Chief Information Officers Council
CIOC Community Information Online Consortium
CIOC Combined/Current Intelligence Operations Center
CIOC Counter-Insurgency Operations Command
CIOC COMBICON I/O Connector
 revenue has risen steadily throughout the decade, from just under $400 million in 2000 to an expected $500 million in 2003, and will likely reach $600 million in 2005.

Though they face many of the same obstacles that hurt the CLECs, CIOCs enjoy significant advantages that could aid their long term viability as successful challengers, including: low debt, parents with deep pockets, the ability to bundle voice, data and video, and a focus on third and fourth tier markets where they face minimal competition, at present.

According to NPRG, these assets have helped the IOCs survive slowing revenue and access line growth, retrenchment re·trench·ment
n.
The cutting away of superfluous tissue.
 and consolidation - the woes that sank their CLEC colleagues.

The NPRG report provides a comprehensive study of the 28 leading IOC CLEC operations, offering extensive profiles, operational metrics on revenue, capex, access lines, and number of switches, as well as a review of each company's strategy, services, OSS Oss (ôs), city (1994 pop. 62,141), North Brabant prov., S Netherlands; chartered 1399. It is a significant industrial center. Manufactures include meat products, chemicals, pharmaceuticals, electrical equipment, and metalware. , equipment and markets served. Additionally, the report gives a description of 39 other rising stars in the CIOC world.

"The CIOCs have a sound strategy that mirrors the approach of second generation CLECs which avoided Tier I and Tier II cities already saturated with competition in favor of low density markets largely overlooked, or even deliberately ignored," said Terry Barnich, NPRG President. "The difference: While the CLECs withered when funding dried up, CIOCs have deep financial roots. In short, though there have been a few outright failures, the CIOCs have by and large demonstrated impressive staying power."

The ultimate test to the CIOCs' viability will come as new competitors enter the market. Cable MSOs, DBS (Direct Broadcast Satellite) A one-way TV broadcast service from a communications satellite to a small round or oval dish antenna no larger than 20" in diameter.  providers, mobile operators or even the RBOCs may soon turn their attention to the moderately comfortable niche now enjoyed by the CIOCs.

"Until now, CIOCs have largely flown under the radar This article is about the magazine. For other uses, see Under the Radar (disambiguation).

Under the Radar is an American magazine that bills itself as "The solution to music pollution." It features interviews with accompanying photo-shoots.
 of major competitors, who have concentrated their resources on larger markets," said Craig Clausen, Senior Vice President for NPRG. "Now all players, including the RBOCs, are hungry to exploit every niche, and they threaten to come upon the CIOCs with much the same advantages - voice-data-video bundles, big bankrolls and a commitment to win."

The Competitive IOC Report (IOC CLEC Research, Analysis & Forecasts) 2003(TM) (2nd Edition) (238 pages) is available from NPRG for $4,250 (additional copies are $1,650). Site Licenses are also available. Order your hardcopy(s) or CD-ROM CD-ROM: see compact disc.
CD-ROM
 in full compact disc read-only memory

Type of computer storage medium that is read optically (e.g., by a laser).
(s) by calling NPRG at 312-980-4796 or via email at info@nprg.com.

About New Paradigm Resources Group

New Paradigm Resources Group, Inc. (NPRG) is the nation's leading research and consulting firm analyzing the competitive telecom industry. NPRG's publications are recognized as the most reliable and comprehensive in the competitive telecom sector with several specializing on various segments, such as the Broadband Provider Report(TM), the Cable Broadband Telephony Report(TM), the Competitive IOC Report(TM) and 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.  Report(TM). By continually monitoring the telecom market to develop these in-depth reports, NPRG underscores and hones its expertise in providing a wide range of client-specific consulting services requested by carriers, equipment vendors, investors and consultants in the industry. NPRG was founded in 1993 and is headquartered in Chicago. Additional information about New Paradigm Resources Group is available on the Internet at www.nprg.com.
COPYRIGHT 2003 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jun 18, 2003
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