A competitive local exchange carrier (CLEC), is a telecommunications provider company (sometimes called a "carrier") that competes with other, already established carriers (generally the incumbent local exchange carrier).
Local exchange carriers (LECs) are divided into incumbent (ILECs) and competitive (CLECs). The ILECs are usually the original, monopoly LEC in a given area, and receive different regulatory treatment from the newer CLECs.
Made possible by the Telecommunications Act of 1996, some CLECs face a difficult future. Many CLECs operate using the unbundled network element platform (UNE-P), in which they lease the underlying copper and port space on the local switch. The UNE-P, as it currently exists, is being called into question by the Federal Communications Commission (FCC). With the recent Triennial Review in August 2003, a large portion of rules set forth by the Telecommunications Act of 1996 began to be rewritten. One alternative to the UNE-P is unbundled network element loop (UNE-L), in which the CLEC has access to or operates their own local switch. The underlying copper (loop) that runs to your house is then leased by the CLEC, and cross-connected to the CLEC's switch. Both UNE-P and UNE-L have their own unique advantages and disadvantages. Other CLECs bypass the ILEC's network entirely, using their own facilities. These facility-based LECs include cable companies offering phone service over coaxial cable.
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