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Costs CLEC Equipment Little or no new equipment is needed for your ISP to become a CLEC. This is where our specialized focus on helping ISPs become CLECs is most valuable. Most or all of the equipment you will need, you already have. The only issue may be the type of modem bank equipment. We work with Cisco 5300/5350/5400 series modem banks. Your modem banks become your telephone switching equipment. We can assure you that the Cisco modem banks do operate reliably in this kind of call control environment - and were designed to do so. The good news is that if you don't have Cisco equipment, you can purchase used Cisco equipment and sell your existing equipment on a nearly even dollar basis. Deposits and Application fees Typically $1,000 - $3,000 is required for the various application fees to become a CLEC. Deposits with your incumbent telephone company and sometimes a performance bond with your state PSC may be required. These deposits can usually be replaced with a letter of credit from your bank for fees less than $1,000. Collocation setup fees may also be necessary which can cost between $3,000 and $17,000 (the most expensive part of the process, but not always necessary). Savings, many times over, will be realized once you become a CLEC. American CLEC fees Most of our payment comes as a portion of the savings we obtain for you. After we meet with you, we will write a detailed proposal which will include our total fee. We work on a flat rate basis. Once you have us on your side we are available for whatever time it takes. Typically we charge $2,000/month for the implementation period which is approximately six to nine months. At the end of that period, you will have an operational CLEC and will begin to save money over circuits that you had before. We take a portion of that monthly savings toward the remainder of the fee. Of course, it is in our interest to get your CLEC up and running as quickly as possible and to save you as much as possible. We don't get paid until you do!
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