Some CLECs Are Lucky: MSOs Rule Them.(financial analysis of competitive local-exchange carriers)(Statistical Data Included)

Multichannel News, June, 2001 by WILDE, CANDEE

For competitive local-exchange carriers, now is a great time to have backers with deep pockets and a strong, supportive management team. But few are so lucky. Why? Because the financing that supported rapid expansion in the CLEC sector all but dried up just about a year ago, when previously indulgent investors became impatient for signs of profitability.

Today, emerging telecom companies are finding that loans are hard to come by, venture capitalists are investing elsewhere and stock prices have plummeted. Industry insiders predict it will be at least three to six months -- or possibly longer -- before significant funding again becomes available. But the financial clouds that darken prospects for the least-solvent CLECs could have a silver...

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