There are CLEC business models that will work, based on regional or value-added business plans. But, just as in the e-commerce space, there were many mediocre business plans out there.
Incumbent carriers charge the same but offer enhanced services and keep all of what they earn.
But CLECs must pay the incumbent carriers to use their equipment. Perhaps, therein lies the problem. While this may represent CLECs' skepticism at being treated fairly by incumbents, it could also represent a fear by the competitive carriers of moving directly into home broadband access. Attendees also worried what would happen to the FCC if George W. Bush wins the White House. In general, Republicans favor incumbents and Democrats usually side with CLECs, although there are exceptions to this rule.