What's Fueling the CLEC Buying Binge?
The past year has been one of heavy consolidation for US-based competitive local exchange carriers (CLECs), but underlying the need to gain scale through acquisition are a few other prominent trends, according to industry experts.
Things motivating CLECs to consolidate include the need to add more fiber infrastructure, the desire to move to cloud-based and data center services, and, of course, the improved economic picture, which is making a lot of this possible. Also, experts note, CLECs and independent incumbent service providers such as CenturyLink Inc. (NYSE: CTL) and Windstream Communications Inc. (Nasdaq: WIN), are increasingly looking to serve larger enterprises, and not just the small and mid-sized market.
Here's a breakdown of those trends and how they are playing out:
— Carol Wilson, Chief Editor, Events, Light Reading
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