Overview The challenge for CLECs today, is to gain market share with sustainable profitability. Unfortunately, most facilities based CLECs have yet to turn a profit. ADC has a unique solution called PG-Flex Plus that is enabling CLECs to achieve their market share and profitability objectives. In this application note, we show how the PG-Flex Plus solution is being used by leading CLECs to aggressively attack the small business market while simultaneously increasing their gross profits. Most CLECs, in an effort to serve small businesses, have deployed traditional Digital Loop Carrier (DLC) systems in their Co-Location Offices (COLOs). Traditional DLCs were designed for regulated rate-of-return based ILEC applications. Traditional DLCs are capital intensive and are limited to offering only one telephone line per leased unbundled loop. In ILEC applications, the general public helps to pay for the costs of equipment and costs of the copper pair. CLECs by definition, are “competitive” and are not guaranteed anything by the general public. Unfortunately, the deployment of traditional DLCs by CLECs has been a major reason for the poor financial performance of these companies. In CLEC applications, PG-Flex Plus directly addresses the problems created by DLCs. CLECs can use PG-Flex Plus as a complement to their existing DLCs to squeeze more profitability out of these legacy systems. PG-Flex Plus minimizes initial capital expenditures with a “pay as you grow” architecture. Additionally, PG-Flex Plus can reduce your recurring costs associated with leasing unbundled loops by more than 80%. This reduction in recurring costs is the key to getting a significant return on your investment and achieving sustainable profitability. DLC Complement - Application 1 The PG-Flex Plus solution works in conjunction with legacy DLC systems to reduce the number of unbundled loops required to serve your small business customers. A DLC system consumes an unbundled loop for every voice circuit delivered to your small business customer. In the DLC complement application, the existing DLC line cards feed the PG-Flex Plus systems, and provide the GR-303 interface to the switch. The PG-Flex Plus system transparently combines up to six toll grade full PCM voice lines, from the DLC, over a single unbundled loop, while supporting your existing POTS, CLASS, DDS, EBS or ISDN services. PG-Flex Plus™ Small Business Access Solution 9/00 • 100087PR application note Legacy DLC PG-Flex Plus Shelf Customer Location Line 1 Line n PG-Flex Plus RT Multiple lines over a line powered unbundled loop CLEC Co-Location Office DS0s ADC Telecommunications, Inc., P.O. Box 1101, Minneapolis, Minnesota USA 55440-1101 Specifications published here are current as of the date of publication of this document. Because we are continuously improving our products, ADC reserves the right to change specifications without prior notice. At any time, you may verify product specifications by contacting our headquarters office in Minneapolis. ADC Telecommunications, Inc. views its patent portfolio as an important corporate asset and vigorously enforces its patents. Products or features contained herein may be covered by one or more U.S. or foreign patents. 100087PR 09/00 Original © 2000 ADC Telecommunications, Inc. All Rights Reserved An Equal Opportunity Employer Web Site: www.adc.com From North America, Call Toll Free: 1-800-366-3891 • Outside of North America: +1-952-938-8080 Fax: +1-952-946-3292 For a complete listing of ADC's global sales office locations, please refer to our web site. DLC Complement - Application 2 The PG-Flex Plus solution can also be configured in a stand-alone application where there is no pre-existing DLC system or where the DLC usage is limited to providing to single line customers. In this application, the PG-Flex Plus system provides the GR-303 interface to the switch, and delivers up to six toll grade full PCM voice lines over a single unbundled loop while supporting POTS, CLASS, DDS, EBS or ISDN services. Benefits As a result of the unique multi-line capability of the PG-Flex Plus system, monthly unbundled loop charges can be reduced by more than 80%. This significant reduction in recurring expenses is key to helping you become EBITDA (earnings before interests taxes, depreciation and amortization) positive in as little as 14 months. Additionally, PG-Flex Plus provides a healthy return on your investment, often exceeding 150% in just 3 years. Customer Location Multiple lines over a line powered unbundled loop CLEC Co-Location Office Line 1 Line n PG-Flex Plus Shelf PG-Flex Plus RT Monthly unbundled loop cost for a 6 line customer $40 $60 $100 $80 $20 $0 DLC only PG-Flex Plus Application 1 or 2 $90 $15 Cumulative ROI 0% 50% 150% 200% 100% -50% -100% Application 2 DLC only Application 1 Year 1 Year 2 Year 3 . your existing POTS, CLASS, DDS, EBS or ISDN services. PG-Flex Plus™ Small Business Access Solution 9/00 • 100087PR application note Legacy DLC PG-Flex Plus Shelf Customer Location Line 1 Line n PG-Flex Plus RT Multiple. 1 The PG-Flex Plus solution works in conjunction with legacy DLC systems to reduce the number of unbundled loops required to serve your small business customers.