CLEC takes local networks to the big city >BY BETH SNYDER, Switching & Transmission Editor
When building out local fiber networks, Brooks Fiber Communication has traditionally stuck to second- and third-tier cities. However, the competitive local exchange carrier made a move up last week, when it added Long Island, New York, and Minneapolis and St. Paul, Minn., to its expansion plans.
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The move begs the obvious question: If Brooks is finding success in second- and third-tier markets, why jump into the ultra-competitive Tier 1 markets? In this case, Brooks has gotten some "insurance." It has reached several recent interconnection agreements with interexchange carriers-AT&T among them-to provide local voice circuits in those new markets.
"We're able to go into the market with some level of revenue streams we know we're going to get," said Waymon Tipton, senior vice president for strategic development and corporate communications. "We see this as a deepening of our relationship with these carriers, and we certainly expect our relationships to keep growing.
With the problems between the Bell regional holding companies and the IXCs in negotiating for local loops, it's probably not surprising that the IXCs are turning to the new and existing CLECs.
As Tipton said, "They have to use someone where they don't have local facilities. And we are a facilities-based provider.
The $66 million expansion will be built by the end of 1997 and will consist of Class 5 switches and Sonet fiber rings. The three new cities, which bring Brooks' total to 36 service areas, will also raise the company's $15 billion of potential market share by $5 billion.
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© 2012 Penton Media Inc.
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