LECs

Local exchange carriers (LECs) are telecommunications providers that own and operate the local telephone network infrastructure that serves residential and business customers within a defined geographic area. LECs typically own the local loop, switching facilities, and interconnection points with other carriers, and they provide the core dial-tone services needed to access the public switched telephone network (PSTN).

In the United States, LECs are broadly categorized into incumbent local exchange carriers (ILECs) and competitive local exchange carriers (CLECs). ILECs emerged from the former Bell System after the 1984 breakup and generally held the dominant share of local service in their territories. CLECs entered markets after deregulation in the 1990s to compete with ILECs by leasing network elements or building their own infrastructures.

Regulation and policy: Local service prices and basic service terms are typically regulated by state public utility commissions, while interconnection, wholesale terms, and universal service obligations are overseen by the Federal Communications Commission (FCC). Rules on interconnection and access to network elements have shaped CLEC penetration, including the use of unbundled network elements (UNEs) and reciprocal compensation for local traffic.

Services and evolution: In addition to traditional voice service, LECs commonly offer high-speed data services such as DSL, fiber Internet, and IP-based voice and video services. Many LECs participate in universal service programs and evolving interconnection arrangements as the telecommunications landscape shifts toward broadband and convergence with mobile and cloud services.

Global usage: The term LEC is especially common in North America, where it designates the local portion of the telephone network; other jurisdictions may use different terminology for similar entities.