| The most costly portion of any point to point data | | | | providers have network within 1000 feet of your |
| connection is the local loop, commonly referred to as | | | | location. This typically will classify your building as |
| "the last mile". A local loop provided by the local | | | | "near-net" to a provider. In many cases an alternative |
| exchange carrier (LEC) is a tariffed product that does | | | | local loop provider will consider extending their existing |
| not mirror current market rates. For many years, the | | | | network to your location to provide service. The cost |
| LEC used commercial services to subsidize a | | | | of the build out is then worked into your monthly |
| mandate to provide services to all residential | | | | service charge. Each network provider has a different |
| customers. | | | | business model to determine how much of the |
| The Telecommunications Act of 1996 created | | | | burdened cost of the network build is passed along to |
| competition to provide local loops to business | | | | the customer. You want to search for a company that |
| customers. New companies commonly referred to as | | | | is willing to shoulder some of the cost in exchange for |
| competitive local exchange carriers (CLECs) began to | | | | additional customers that they will acquire in your |
| overbuild fiber networks to provide the last mile to | | | | building. |
| business customers. The CLECs were not burdened | | | | The final option to consider is building a private fiber |
| with the requirement of providing service to all | | | | network to connect your locations, Although a large |
| residential customers and therefore were able to | | | | undertaking and extremely time consuming it can |
| provide aggressive prices for last mile connections. | | | | sometimes provide a short payback period of your |
| The collapse of the telecom industry at the turn of the | | | | bandwidth requirements are large. If you do not have a |
| last century forced many of the early CLECs into | | | | capital budget for this type of construction project |
| bankruptcy. The fiber networks they built, however, are | | | | there are companies that will build the network and |
| still in service. The trick is to know where to find them | | | | lease it back in the form of a monthly service charge. |
| and understand how to leverage them. Finding | | | | A prime example of a custom network build-out is a |
| alternative last mile providers is a combination of good | | | | XXXXXXX company we recently serviced. They |
| detective work, tribal knowledge and creativity. | | | | needed connectivity, but the LEC was going to charge |
| The first step in finding an alternative local loop | | | | $28K per month for lesser bandwidth. We were able |
| provider is to determine what network providers have | | | | to design and deploy a custom build of an OC48 |
| service to your building. If an alternative provider is | | | | connection for only $15K per month. With NEF's help, |
| already servicing customers in your location then you | | | | this company was able to get five times the |
| should be able to acquire a local loop for a fraction of | | | | bandwidth for nearly half the cost. |
| the cost of one provided by the LEC. This is where | | | | Deciding what connectivity solution is right for you will |
| the detective work comes into play. You can start by | | | | depend on your individual needs, time frame, budget, |
| asking neighbors who provides their | | | | bandwidth and security, but you should take the time to |
| telecommunications service. | | | | find out if a fiber connection to avoid the local loop is |
| If there are no known alternative local loop providers in | | | | possible. |
| your building the next step is to determine which | | | | |