| The terms Tier I, Tier II, or Tier III are commonly used to describe the size and location of the markets served by CLECs or those that they plan to enter. Carriers often speak of a business strategy to serve the highly competitive Tier I markets. Other CLECs detail plans to concentrate on the underserved Tier II and III markets. But what exactly do these statements mean? What precisely is a Tier I market? And how does one distinguish Tier I from Tier II or Tier III? Are Tier I markets really the first choice of most competitors? Do customers in Tier I cities have more choices than those in Tier II or Tier III?
This month's CLEC Issues will take a look at these questions. We'll develop our own definition of the markets for Tier I, II, and III based on population size, and provide examples of the cities and towns that compose each category. We'll examine a sample of cities from each market category and take a look at the carriers that provide service in each Tier. Finally we'll take a look at the number of CLECs serving each market classification. We'll examine the competitive choices customers in each Tier enjoy and find out what markets are really the most competitive.
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