CLEC confusion

It's getting pretty tough to keep track of the CLECs on the East Coast.

ITC^Deltacom recently called off its three-way merger with Network Telephone and FDN Communications. For FDN (formerly Florida Digital Networks), it was the second time a planned three-way merger fell apart. Back in 2000, Florida Digital had plans to blanket the Eastern seaboard by joining forces with Cavalier Telephone and Conversent Communications to form one big CLEC called Elantic Communications. That merger never took place.

However, Cavalier Telephone did eventually create a holding company called Elantic Networks with which it purchased the long-haul wholesale fiber network of Dominion Telecom last March. That Elantic declared bankruptcy four months later, after it failed to quickly unload the unwanted parts of the network.

Meanwhile, Conversent Communications--one of the CLECs that was to be part of Elantic Communications (not to be confused with Elantic Networks or its operating subsidiary, Elantic Telecom)--is currently aiming to merge with a West Virginia-based CLEC named FiberNet. But that FiberNet is not to be confused with the FiberNet that acquired ConEd Communications last month.

Conversent's CEO, Rob Shanahan, told me that investor interest in CLECs is increasing now that the fog seems to be lifting in that sector, given the level of consolidation in recent quarters and the establishment of clearer (if not entirely clear) federal regulations. With all the name games, false starts and juxtapositions going on, it seems odd to ascribe clarity to the CLEC sector. But all things are relative, after all, and in the telecom industry, clarity is in the eye of the beholder.

E-mail me at egubbins@primediabusiness.com.