CLEC - Competitive Local Exchange Carrier

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A Competitive Local Exchange Carrier (CLEC) is a telephone company that competes with an incumbent local exchange carrier (ILEC) such as a Regional Bell Operating Company (RBOC)

A CLEC's purpose is to introduce competition into the telecommunication industry following laws passed by the Congress of the United States to break up the regional monopolies of AT&T and deregulate the telecom industry.

The Telecommunications Act of 1996 opened up the telecommunications marketplace to companies with CLEC status to use an ILEC's infrastructure in two ways:

  • Access to Unbundled Network Elemements (UNEs) - CLECs require availability of unbundled network elements (specifically the local loop) through collocation arrangements. With access to the local loop, CLECs can connect their switches with the ILEC's switches and ILEC customers.
  • Resale - CLECs are able to resell ILEC services via a wholesale discount.

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