Triennial Review

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The triennial review, as anyone familiar with the telecom industry can tell you, is conducted by the FCC as a sort of watermark to measure the degree of competition within the industry following the passage of the Telecommunications Act in 1996. The review has direct implications for every aspect of wireline telecommunications, and for companies involved in this sector of the industry, it can be an invaluable tool for gauging future market directions. Specifically, the review evaluates ways in which ILECs can continue to free up their network resources for competitors in ways that stimulate and foster competition.

The Triennial Review: Further Implications

At the level of the end user, the Triennial Review creates implications specifically dealing with the possibilities created through unbundled network elements, or UNEs. The unbundling of ILEC network elements has led to the creation of new market potential in the form of ISP/CLECs. The full realization of competitive local exchange carriers has recently taken off in the form of outstanding net profits to be gained from harnessing network elements for the fostering of independent enterprise.

As a result, this sector of the industry has tremendous upside in the form of yet-unrealized revenue streams that are ripe for the taking. In fact, it is estimated that when the FCC convenes the next review in 2006, over half of the telephones in the country will be using the resources of UNE-P CLECS. This will translate into tremendous revenue potential for entrepreneurs wishing to create CLECs.

At the same time, some companies are exploring new technologies such as wireless capabilities that are pushing the revenue potential even farther. This successful implementation of new ideas reveals the level of possibility that exists in what is still a relatively new, untapped segment of the telecom industry. For those individuals or companies interested in taking the plunge, there is no better time for capitalizing on the outstanding potential that awaits in this rapidly expanding market.


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