Best of the ISP-Lists

Entering the DSL Business

Members of the ISP-CLEC list discuss whether an ISP needs a CLEC license to provide DSL.

[August 16, 2000]

On the ISP-CLEC list in August, JH asked a straightforward question:

"Is it necessary to be a CLEC to offer DSL?"

 

And WSM offered a straightforward response:

"In most states, providing DSL is a telecom service, and certification as a carrier is required."

Still, some respondents suggested that a number of different compromises might be possible:

[VB contended] "You do have to be a CLEC to offer DSL, but you can become a data-only CLEC (DLEC) without needing all the voice switching paraphernalia; we've done exactly that here. Nothing says that you must provide both voice and data."

[NO noted] "A lot of DSL is sold by non-CLECs to the end customer. You can resell a wholesaler's DSL to your customers without being a CLEC. That's how Covad and others operate."

[PT added] "Chances are you will end up doing it this way: you buy a connection to a CLEC to offer DSL; then when you sell a DSL line, you pay the CLEC about $50 a month for the line and bill the client whatever you want."

[This made AD suggest] "Now that Pac Bell is selling DSL for $29 a month, where's the profit in becoming a DSL provider?"

Others warned that providing DSL without a CLEC license is becoming less and less advisable:

[CW added] "Covad is moving away from the wholesale model, and Northpoint may be right behind. The window of opportunity is closing for the ISP that isn't becoming a CLEC."

[BJ offered] "Taking into consideration that every state has different laws regarding CLECs, check out this link: http://www.fispa.org/news.html, an article entitled 'Why should an ISP get into the telephone company game and file to become a CLEC?' on the Florida ISP Association's website."

[Ed. note: Also see, "Serious About Voice? Become a CLEC"]

—End