 | The examples and perspective in this article may not represent a worldwide view of the subject.(September 2020) |
An incumbent local exchange carrier (ILEC) is a local telephone company which held the regional monopoly on landline service before the market was opened to competitive local exchange carriers, or the corporate successor of such a firm.
An incumbent local exchange carrier is a local exchange carrier (LEC) in a specific area that
The Federal Communications Commission (FCC) may, by rule, provide for the treatment of an LEC (or class or category thereof) as an ILEC if:
ILECs have the same duties as a LEC and in addition:
In the United States, ILECs were companies in existence at the time of the breakup of AT&T into the Regional Bell Operating Companies (RBOCs), also known as the "Baby Bells". [2]
Various regional independents also held incumbent monopolies in their respective regions. The largest of these was GTE, the second largest ILEC after the Bell System. GTE was later absorbed into Verizon, an RBOC. In some areas, an independent telephone company is responsible for providing local telephone exchange services in a specified geographic area.
In Canada, ILECs are the original telephone companies such as Telus (BC Tel and Alberta Government Telephones), SaskTel, Manitoba Telecom Services (MTS Allstream), Bell Canada and Aliant, as well as any other company that previously held a monopoly to serve a community and continues to do so, or a successor company if it is bought and absorbed. ILECs are obligated to serve the entire exchange area as a "provider of last resort", while CLECs can choose which locations to serve, be it by facilities of their own or by resale of services of an ILEC or another CLEC.
GTE Corporation, formerly General Telephone & Electronics Corporation (1955–1982), was the largest independent telephone company in the United States during the days of the Bell System. The company operated from 1926, with roots tracing further back than that, until 2000, when it was acquired by Bell Atlantic; with the combined companies formed under the currently operating Verizon banner.
Local loop unbundling is the regulatory process of allowing multiple telecommunications operators to use connections from a telephone exchange to the customer's location. The physical wire connection between the local exchange and the customer is known as a "local loop" and is owned by the incumbent local exchange carrier. To increase competition, other providers are granted unbundled access.
The Kingsbury Commitment is a 1913 out-of-court settlement of the United States government's antitrust challenge against the American Telephone and Telegraph Company (AT&T) for the company's then-growing vertical monopoly in the telecommunications industry. In return for the government's agreement not to pursue legal action against the company as a monopolist, AT&T agreed to divest the controlling interest it had acquired in the Western Union Telegraph Company, and to allow non-competing independent telephone companies to interconnect with the AT&T long-distance network.
Local exchange carrier (LEC) is a regulatory term in telecommunications for the local telephone company.
Telus Communications Inc. (TCI) is the wholly owned principal subsidiary of Telus Corporation, a Canadian national telecommunications company that provides a wide range of telecommunications products and services including internet access, voice, entertainment, healthcare, video, smart home automation and IPTV television. The company is based in the Vancouver, British Columbia, area; it was originally based in Edmonton, Alberta, before its merger with BC Tel in 1999. Telus' wireless division, Telus Mobility, offers UMTS, and LTE-based mobile phone networks. Telus is the incumbent local exchange carrier in British Columbia and Alberta. Its primary competitors are Rogers Communications and Bell Canada. Telus is a member of the British Columbia Technology Industry Association.
In telephony, the demarcation point is the point at which the public switched telephone network ends and connects with the customer's on-premises wiring. It is the dividing line which determines who is responsible for installation and maintenance of wiring and equipment—customer/subscriber, or telephone company/provider. The demarcation point varies between countries and has changed over time.
Bell Canada is a Canadian telecommunications company headquartered at 1 Carrefour Alexander-Graham-Bell in the borough of Verdun, Quebec, in Canada. It is an ILEC in the provinces of Ontario and Quebec; as such, it was a founding member of the Stentor Alliance. It is also a CLEC for enterprise customers in the western provinces.
A competitive local exchange carrier (CLEC), in the United States and Canada, is a telecommunications provider company competing with other, already established carriers, generally the incumbent local exchange carrier (ILEC).
Northwestel Inc. is a Canadian telecommunications company that is the incumbent local exchange carrier (ILEC) and long-distance carrier in the territories of Yukon, the Northwest Territories, Nunavut, and part of northern British Columbia and northern Alberta. Originally established in 1979 by the Canadian National Railway from CN's northern telecommunications assets, it has been owned by BCE Inc. since 1988.
The Service Improvement Plan (SIP) was a program, during the years 2001–2009, mandated by the Canadian Radio-television and Telecommunications Commission (CRTC) to provide a defined level of basic telephone service to all Canadians, other than those so isolated that it is costly and impractical to reach. The companies completed the programs in the middle of the 2000-2009 decade, with a cut-off of availability to customers in 2007 or 2008.
The Stentor Alliance was a formal alliance of Canada's major telecommunications companies, specifically its incumbent local exchange carriers. It derives its name from the Greek mythological figure Stentor.
Unbundled network elements (UNEs) are a requirement mandated by the United States Telecommunications Act of 1996. They are the parts of the telecommunications network that the incumbent local exchange carriers (ILECs) are required to offer on an unbundled basis. Together, these parts make up a local loop that connects to a digital subscriber line access multiplexer (DSLAM), a voice switch or both. The loop allows non-facilities-based telecommunications providers to deliver service without having to lay network infrastructure such as copper wire, optical fiber, and coaxial cable.
Unbundled access is an often practiced form of regulation during liberalization, where new entrants of the market (challengers) are offered access to facilities of the incumbent that are hard to duplicate. Its applications are mostly found in network-oriented industries and often concerns the last mile.
An independent telephone company was a telephone company providing local service in the United States or Canada that was not part of the Bell System organized by American Telephone and Telegraph. Independent telephone companies usually operated in many rural or sparsely populated areas.
The Bell System was a system of telecommunication companies, led by the Bell Telephone Company and later by the American Telephone and Telegraph Company (AT&T), that dominated the telephone services industry in North America for over 100 years from its creation in 1877 until its antitrust breakup in 1983. The system of companies was often colloquially called Ma Bell, as it held a vertical monopoly over telecommunication products and services in most areas of the United States and Canada. At the time of the breakup of the Bell System in the early 1980s, it had assets of $150 billion and employed over one million people.
Frontier West Virginia, Inc. is one of the original Bell Operating Companies and provides local telephone service in the U.S. state of West Virginia.
Verizon Communications Inc. v. Federal Communications Commission, 535 U.S. 467 (2002), is a United States Supreme Court case in which Verizon Communications argued that the FCC had an unreasonable way for setting rates for leasing network elements. It held that the FCC can require state commissions to set the rates charged by incumbents for leased elements on a forward-looking basis untied to the incumbents' investment and that the FCC can require incumbents to combine elements of their networks at the request of entrants.
United States Telecom Association v. FCC, 359 F.3d 554, is the court case in which the Washington, D.C., Circuit Court of Appeals vacated the Federal Communications Commission's Triennial Review Order (TRO). The court's decision is based on the Telecommunications Act of 1996 section 251 which defines unbundled network elements (UNEs) for incumbent local exchange carriers and competitive local exchange carriers.
Total element long-run incremental cost (TELRIC) is a calculation method that the United States Federal Communications Commission (FCC) requires incumbent local exchange carriers (ILECs) to use to charge competitive local exchange carriers (CLECs) for interconnection and colocation, effectively imposing a price ceiling. A variant of long-run incremental cost (LRIC), it "measures the forward-looking incremental cost of adding or subtracting a network element" from a hypothetical system. This allows the incumbent to recover a share of the fair value of their inputs in the long run.
