CLEC

A Competitive Local Exchange Carrier (CLEC) is a telecommunications provider that competes with established incumbent local exchange carriers (ILECs) to offer local telephone service. CLECs may build their own networks or lease infrastructure from incumbents or other carriers. The concept emerged in the United States after deregulation and the Telecommunications Act of 1996, which opened local markets to competition by requiring interconnection with new entrants and allowing new players to offer local service.

CLECs typically offer voice services, data, and broadband, often through a mix of facilities-based networks and wholesale arrangements with ILECs to access last-mile facilities. Regulatory frameworks for CLECs involve interconnection terms, provisioning of network elements, and compensation, governed by the Federal Communications Commission (FCC) and state public utility commissions. Historically, many CLECs began by reselling incumbent services or using unbundled network elements (UNEs); over time, policies regarding UNEs have changed, affecting the ease of entry and competition.

Market impact and status: CLECs contributed to increased competition, more consumer choices, and price pressure in local markets. They remain a component of the telecom landscape alongside ILECs and other providers such as cable operators, with varying degrees of market presence across regions. The term CLEC is primarily used in the United States, though analogous competitive local service providers exist in other countries under different regulatory regimes.